For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Diphenhydramine Hydrochloride market in North America experienced a mixed pricing environment, characterized by fluctuations influenced by various factors. The overall trend for Diphenhydramine Hydrochloride prices during this period displayed both positive and negative movements, largely driven by shifts in demand from downstream industries.
Initially, prices surged due to heightened buying activity in sectors such as pharmaceuticals and healthcare. However, challenges arose in the supply chain, with disruptions at key shipping chokepoints like the Red Sea and the Panama Canal causing delays in product delivery, including Diphenhydramine Hydrochloride and other goods. Towards the end of the quarter, prices experienced a decline attributed to a downturn in business sentiments, casting uncertainty over the economy. Additionally, efforts to curb rising prices led to actions such as the Federal Reserve raising interest rates to counter inflationary pressures. This move strained consumers' finances, diminishing their purchasing power and further dampening demand in the USA market.
Overall, the pricing environment for Diphenhydramine Hydrochloride in Q1 2024 witnessed fluctuations influenced by demand, supply chain disruptions, and economic conditions.
Asia Pacific
In Q1 2024, the pricing dynamics of Diphenhydramine Hydrochloride in the APAC region, notably in China, were subject to various influences, leading to fluctuations in the market. The initial surge in prices at the quarter's onset was driven by a heightened demand across end-user healthcare and pharmaceutical industries. Seasonal variations played a significant role, with colder weather amplifying the need for medications like Diphenhydramine Hydrochloride. Additionally, the transition from winter to spring intensified demand, widening the supply-demand gap and causing prices to rise. Increased inquiries from major markets such as the USA and Europe also correlated with the price uptick. However, despite the initial surge, prices experienced a decline by the quarter's end. Several factors contributed to this downturn, including concerns about insufficient domestic demand, despite an improvement in economic activity in China following the extended holiday period. Furthermore, the absence of inquiries from international markets exacerbated the downward pressure on prices. In conclusion, the final price for Diphenhydramine Hydrochloride (USP, FDA) FOB Shanghai in China stood at USD 16000 per metric ton, reflecting the complex interplay of factors influencing pricing dynamics during Q1 2024.
Europe
In the first quarter of 2024, the pricing dynamics of Diphenhydramine Hydrochloride in Europe presented a nuanced landscape influenced by various factors. At the onset of the quarter, prices experienced an increase driven by factors such as geopolitical tensions, logistical challenges, and limited inventories. Disruptions in shipping and logistics during the Spring festival in China exacerbated delays and increased transportation expenses, impacting the timely delivery of Diphenhydramine Hydrochloride to the market. Limited inventories within the supply chain further exacerbated the supply shortage, contributing to the rise in prices. By the end of the quarter, in March, prices declined as the market grappled with persistently poor performance in new industrial orders, characterized by insufficient domestic demand juxtaposed against a relatively high backlog. The decision of the European Central Bank to maintain its key interest rate at a record high further impacted market dynamics. Furthermore, the overall supply remained sufficient, prompting market participants to adjust inventory levels by offering temporary discounts or implementing price reductions. Overall, the pricing dynamics of Diphenhydramine Hydrochloride in Europe during Q1 2024 reflected a complex interplay of factors, driving nuanced fluctuations in prices across different sectors and regions.
For the Quarter Ending December 2023
North America
The Diphenhydramine Hydrochloride market in North America encountered challenges during the fourth quarter of 2023, marked by initial price decline, a subsequent increase in November, and another decline in December. Influential factors included elevated interest rates, trading activities, and seasonal influences, shaping the market dynamics.
In the United States specifically, Diphenhydramine Hydrochloride prices significantly decreased in October, aligning with subdued domestic demand and ample inventories. New orders minimally expanded, while the decline in international sales persisted. The robust dollar facilitated affordable imports, contributing to a surplus in the domestic market and further decreasing prices. Subsequently, prices rose due to strong consumer spending and increased confidence, despite persistent higher interest rates. The decline in inflation and lower gas prices eased the burden on consumers, leading to heightened demand and higher Diphenhydramine Hydrochloride prices. However, a December decline ensued, attributed to weakened demand from downstream industries and surplus supply.
Overall, the USA market experienced mixed conditions throughout Q4, influenced by factors like inflation, interest rates, and consumer behavior.
APAC
The fourth quarter of 2023 saw mixed trends for Diphenhydramine Hydrochloride in the APAC region. The market was impacted by several key factors. Firstly, there was a notable increase in demand from the pharmaceutical and healthcare sectors, driven by seasonal influences and a rise in new inquiries and sales. This led to an uptick in prices in some countries, such as China. Secondly, the overall market sentiment showed improvement compared to the previous quarter, with expanded supply and demand, improved logistics, increased purchasing volumes, and heightened optimism among manufacturers. However, there were also challenges faced by manufacturers, including a decline in exports due to weak international demand and the ongoing difficulty of serving overseas markets. In addition, the manufacturing sector in China experienced a contraction in October, which put doubt on the optimistic indications of a potential rebound in the economy. Despite these challenges, overall market dynamics improved, and the APAC region witnessed a stabilization of the manufacturing sector. The latest price of Diphenhydramine Hydrochloride in China for the fourth quarter of 2023 is USD 17065/MT (USP, FDA) FOB Shanghai.
Europe
In the last quarter of 2023, the pricing of Diphenhydramine Hydrochloride in the European region was influenced by various factors. Initially, Germany observed a decrease in Diphenhydramine Hydrochloride prices in October, attributed to subdued consumer sentiments, heightened interest rates, and ample market supply. The significant decline in European consumer inflation during October, driven by lower fuel prices and swift interest rate hikes that curtailed business expenses and market demand, played a pivotal role in the reduction of Diphenhydramine Hydrochloride prices.
Moving into November, Diphenhydramine Hydrochloride prices exhibited improvement due to a moderate increase in demand from the pharmaceutical and healthcare sectors, heightened consumer spending, and a reduction in market inventories. Additionally, the decrease in China's exports to the European Union in November contributed to reduced inventories in the German market, further supporting the upward trajectory of Diphenhydramine Hydrochloride prices.
However, by December, Diphenhydramine Hydrochloride prices experienced another decline, primarily influenced by reduced demand from both the pharmaceutical and healthcare sectors. The resurgence of inflation, coupled with sustained elevated interest rates, prompted companies and consumers alike to scale back on investments and spending. This collective reduction in demand for Diphenhydramine Hydrochloride in the German market led to a decline in prices during December.
For the Quarter Ending September 2023
North America
The prices of Diphenhydramine Hydrochloride witnessed a notable decline in July, followed by subsequent increments in both August and September. During the month of July, there was a decline in inquiries for new orders and sales due to persistently feeble domestic and global demand. The Federal Reserve raised its main policy interest rate in July by a quarter percentage point, the highest level in 22 years, lowering overall economic demand and supporting the downward trend. However, prices rose in August and September due to increased energy prices, which increased total company expenses and shipping costs, causing Diphenhydramine Hydrochloride pricing to rise. As Russia and Saudi Arabia continued dramatic supply cuts, gasoline prices increased, pushing crude oil to a 10-month high of $91 per barrel. Furthermore, shipments from key exporting countries such as China decreased, reducing the supply of Diphenhydramine Hydrochloride in the US market and driving up prices. Inventory replenishment was a top priority for market participants, resulting in a surge in Diphenhydramine Hydrochloride pricing.
Asia Pacific
The prices of Diphenhydramine Hydrochloride demonstrated a notable downward trajectory of 4.35 percent in July, followed by modest increases of 5.97% and 1.88% in the subsequent months of August and September. Prices for Diphenhydramine Hydrochloride decreased further in July as industrial activity slowed and demand from downstream industries declined. The official manufacturing PMI (Purchasing Managers Index) was 49.3 in July, indicating that factory activity in China fell for the fourth consecutive month owing to lower foreign orders and inadequate local demand. However, the prices of Diphenhydramine Hydrochloride increased in August and September as a consequence of increased end-consumer demand amid limited market availability owing to the manufacturing sector's continued decline for the fifth consecutive month. Moreover, the Central Bank of China lowered its benchmark interest rate as a result of economic worries, which encouraged market consumption and drove up the price of diphenhydramine hydrochloride in China. The purchasing managers' index (PMI) for manufacturing in China began to gradually rise back into the growing zone in September, indicating the resumption of factory activity and a possible economic recovery in the nation.
Europe
The pricing of Diphenhydramine Hydrochloride witnessed a remarkable descent in July, succeeded by subsequent ascents in both August and September. In July, prices for Diphenhydramine Hydrochloride fell as a result of a slowdown in commercial operations and a fall in demand from the downstream industry. A variety of factors, including consumer reluctance, destocking, and rising interest rates, as well as tighter market conditions and economic and geopolitical uncertainty, can be attributed to the sharp reduction in goods demand. The price surge experienced in the months of August and September can be attributed to the persistent presence of inflation, escalating interest rates, and the oil crisis. In August, the year-on-year change in Germany's consumer price index (CPI) was +6.1%. Food and energy prices have risen faster than average inflation, contributing to high inflation. Energy product prices are up 8.3% year on year after rising 5.7% in July. Firms' expenses and operating costs grow as a result of the persistently rising inflation, contributing to higher Diphenhydramine Hydrochloride prices in Germany.
