Weak Downstream Activity Propels Paracetamol Prices to Go South

Paracetamol price decreased in the global market during the month of April 2023 on account of bearish downstream demand from both the domestic and international markets.

Participants in the APAC region ascribed the lower market sentiments to low downstream product demand and enough supply. Market players were compelled to cut spending and concentrate on the destocking process in order to maintain their profit margin as a result of a little fall in the demand for Paracetamol in the Chinese market at the end of the first quarter of 2023. Additionally, regional port congestion, vessel clustering, and a halt in shipments have been supported by the weaker price trends in April. As a result, until the end of April 2023, the market price trend for Paracetamol continued to decline. Additionally, the Chinese suppliers decided to lower their market prices for Paracetamol in order to increase trade activity as the number of international inquiries decreased.

Similar downward price trends for Paracetamol are also seen in the European Market through the end of the first quarter. Retailers and suppliers were forced to lower their prices for Paracetamol in order to maintain their overall profit margins for the month of April as a result of the local market's lack of demand compared to previous months.

However, the slight increase in inflationary pressures and concerns over a drop in inquiries have caused traders and other domestic market participants to hold back on their quotations. In addition, compared to February, this month's Paracetamol supplies in the nearby area were sufficient to meet the demands of the terminal market. Overall, the pharmaceutical and healthcare industries' decreased demand for Paracetamol and adequate stockpiles had kept the downward trend in this product's market trend.

The price of Paracetamol is anticipated to rise in the future months supported by a steady increase in demand, according to ChemAnalyst. Improved trading activity and better inquiries from the global market are likely to maintain a healthy market environment.