Weakening Demand Push Valsartan Prices Down in the German Market
- 13-Mar-2025 3:45 PM
- Journalist: Emilia Jackson
The German Valsartan market experienced price decline during February after witnessing a rise in the previous month. The price increase occurred because key end-user industries maintained steady demand while supply faced moderate challenges. The February price decrease stemmed from weaker consumer sentiment combined with reduced procurement activities and declining shipping costs and market players maintaining adequate inventory levels.
The Valsartan market experienced price increases during January because customers purchased more product before the Chinese Lunar New Year holiday period from January 29 to February 12. The Chinese Lunar New Year holiday period led to anticipated production delays for APIs (active pharmaceutical ingredients) exported from China so buyers purchased additional stock to prevent shortages. The increased pre-holiday purchasing activities created price increases during the early part of January.
The restart of Chinese production after the holiday in February led to substantial Valsartan supply increases that caused German prices to decrease. The German market received better Valsartan availability when Chinese manufacturers increased production levels and export shipments returned to normal operations. This improved supply situation reduced market pressures and caused prices to decrease.
The German Valsartan market experienced price decreases in February because of the post Lunar New Year impact on Asia-Europe ocean shipping. The shipping costs for Valsartan from China dropped by 50% after early January rates which made transportation expenses more affordable. The reduced logistics costs of importing Valsartan created more affordable prices for German customers which further decreased market prices.
The 2.8% inflation rate reported by Destatis in February 2025 exceeded expectations and became a major factor behind Valsartan price reductions. The combination of rising inflation with rising power costs and interest rates limited consumer purchasing ability. The cautious consumer behavior during this period decreased downstream demand for pharmaceuticals and healthcare products. The reduced procurement activity created inventory excess that led to decreased Valsartan market prices.
The market study from ChemAnalyst depicts that Valsartan prices likely to decrease further because of ongoing weak market demand combined with supply excess. German consumer sentiment will worsen in March despite initial forecasts indicating a slight market recovery. European market confidence is expected to decline as concerns about both economic and political factors in Germany's largest economy continue to grow which will affect Valsartan pricing patterns. Additionally, anticipated inflationary trends and an additional decrease in shipping rate, may also result in decrease in Valsartan prices. In response to this, market participants would lower prices to boost sales.