Global Valsartan Market Witnesses Price Decline Amid Inventory Surge and Subdued Demand

The global market for Valsartan experienced a significant price decrease in July 2023 due to a high level of inventory in the market. Furthermore, the demand from the consumer market remained subdued, further contributing to the downward trend. Market providers shifted their focus to destocking to reduce inventory and sustain profit margins.

Valsartan prices in China continued to decline in July as factory activity slowed down due to a drop in demand from the downstream industry. Demand for Chinese exports also declined due to the rise in interest rates in the US and Europe to fight inflation which kept the prices lower. According to the latest data released by the National Bureau of Statistics (NBS), July's official manufacturing Purchasing Managers Index (PMI) was 49.3 compared to 49.0 in the previous month. However, the reading remained below 50 for the fourth consecutive month, indicating a decline in manufacturing activity as the Chinese economy struggles to recover. The manufacturing activity was hindered due to a drop in overseas orders and a lack of demand in the domestic market, resulting in a decrease in the prices of Valsartan.

Consumer prices in China dipped into deflation last month for the first time in over two years as a drop in domestic spending dampened the country's economic growth after COVID-19. Retailers in China continued to suffer from a sales decline. Suppliers, who anticipated a surge in demand following the lifting of COVID restrictions, have been forced to lower their Valsartan prices.

Similarly, Valsartan prices in Germany declined in July as the business environment deteriorated in the German manufacturing sector, resulting in a sharp drop in new orders amid weak end-user demand. The economic and geopolitical uncertainties and tightened financial conditions contributed to the decrease in Valsartan demand.

The Indian government initiated the Production Linked Incentive (PLI) scheme in order to promote the domestic manufacture of Active Pharmaceutical Ingredients (APIs) and decrease dependence on imports from China. Apart from this, the Indian manufacturing sector continued to experience robust growth at the beginning of Q3. This led to an increase in Valsartan's domestic manufacture, resulting in higher stock levels among the market participants, keeping the Valsartan prices on the lower side.

Based on the findings of ChemAnalyst, Valsartan prices are expected to rise in the upcoming months due to an anticipated surge in demand from the healthcare and pharmaceutical end-user sectors. Consequently, suppliers are expected to raise their prices, thus maintaining a positive market equilibrium.