For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American market for Valsartan experienced a varied trajectory, with initial price increases giving way to declines as the quarter progressed. Prices rose in July, driven by several influential factors. Notably, improved consumer optimism regarding business conditions fostered a positive outlook that supported higher Valsartan prices. Additionally, supply chain disruptions due to blank sailings, resulting from ships being rerouted around the Cape of Good Hope (COGH) because of severe port congestion in both Asia and North America, also contributed to the initial price uptick.
However, the landscape shifted dramatically in August and September, with a significant drop in demand occurring at the fastest rate seen in recent months. In response to this declining demand, many market participants began reducing prices in an effort to stimulate sales, further propelling the downward trend for Valsartan. Compounding these challenges was a notable decrease in inflation, primarily driven by falling energy prices, which eased business overhead costs. This environment allowed companies to lower prices for consumers, contributing to the overall downward movement in Valsartan costs.
In the USA, the market experienced the most pronounced price fluctuations. By the end of the quarter, the price for Valsartan (USP, FDA) CFR New York settled at USD 84,780 per metric ton, highlighting the substantial shifts that characterized the market dynamics throughout Q3.
Asia Pacific
In Q3 2024, the APAC region experienced a fluctuating trend in Valsartan pricing, characterized by initial increases followed by notable declines. Early in the quarter, prices rose due to a combination of factors, primarily driven by robust global demand. This surge was particularly influenced by strong export activities from Asia to major markets such as North America and Europe. Foreign importers adopted precautionary measures, placing larger orders to mitigate the risk of potential shortages, which further fueled the upward price momentum. However, as the quarter progressed into August and September, Valsartan prices began to decline significantly. This downturn was largely attributed to weakening demand, highlighted by a sluggish pace of exports and falling prices that signaled a broader loss of economic momentum across the region. The situation was exacerbated by the implementation of anti-dumping measures by major markets, including the USA, Europe, and India, which negatively affected overall demand for Valsartan in the region. By the end of the quarter, Valsartan was priced at USD 83,000 per metric ton FOB Zhenjiang in China, reflecting the shifts in market dynamics and the challenges faced in sustaining price levels amid changing demand conditions and regulatory influences.
Europe
Throughout Q3 2024, Valsartan pricing in the European market exhibited a mixed trend, with Germany emerging as the most significantly affected region. In July, prices experienced an uptick, driven by positive consumer sentiment and increased purchasing activity. This period coincided with peak seasonal demand, compounded by ongoing capacity constraints and logistical challenges, particularly related to congestion in the Red Sea area, which significantly impacted shipping costs and spot rates. However, the trend shifted in August and September, as several key factors converged to exert downward pressure on prices. The overall economic environment in Europe encountered challenges that weakened consumer sentiment and led to a decrease in domestic demand for pharmaceuticals, including Valsartan. Furthermore, a notable decline in inflation rates, coupled with lower energy prices and favorable base effects, helped ease pricing pressures. These factors contributed to reduced costs for imported Valsartan, prompting suppliers to lower their prices. By the end of the quarter, the price for Valsartan in Germany settled at USD 85,000 per metric ton CFR Hamburg, reflecting the interplay of changing market dynamics and the impact of external economic conditions on pricing strategies.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Valsartan experienced a fluctuating pricing trajectory, influenced by a range of factors affecting the pharmaceutical sector. The USA, which saw the most pronounced price changes, exhibited an unstable pricing environment with notable fluctuations throughout the quarter.
Prices initially increased in April and May due to rising domestic demand. Consumers continued to spend despite cost fatigue, as evidenced by stronger retail sales that boosted Valsartan demand. Additionally, shipping disruptions in the Red Sea region led to longer transit times and faster sailing speeds to mitigate delays. These logistical adjustments resulted in higher fuel costs and elevated charter rates, compounded by operational bottlenecks that further strained shipping capacity, contributing to the price increases.
By June, however, prices began to decline. This shift was driven by a downturn in business sentiment and growing economic uncertainty, which impacted the pharmaceutical and healthcare sectors and led to a decrease in Valsartan demand. Comparing the first and second halves of the quarter, there was a significant -2% decline in prices, reflecting the broader trend of reduced demand and improved supply conditions. Concluding the quarter, Valsartan prices settled at USD 91,400 per metric ton (MT).
Asia Pacific
In Q2 2024, the pricing landscape for Valsartan in the APAC region displayed a varied trajectory due to a range of influential factors. Initially, prices rose as market confidence improved compared to the previous month. The manufacturing sector was in expansion mode, driven by a surge in both domestic and international demand, which led to accelerated output growth. Manufacturers increased production levels to take advantage of the higher order volumes. However, as the quarter progressed, prices began to decline. This shift was largely due to an oversupply situation created by increased manufacturing capacities that outpaced current demand. The warmer seasonal climate contributed to a reduction in bacterial illnesses, which are traditionally treated with Valsartan, thus lowering overall consumption. Additionally, lower production costs—resulting from decreasing raw material prices and reduced transportation expenses—enabled manufacturers to lower their prices. External demand also remained weak, as key export markets faced high interest rates that affected consumer spending on pharmaceutical products. This combination of factors led to a negative market sentiment and a struggle to stabilize prices amidst these challenges. By the end of the quarter, the price for Valsartan (USP, FDA) FOB Zhenjiang in China settled at USD 90,000 per metric ton (MT).
Europe
In Q2 2024, the European Valsartan market experienced a fluctuating pricing trajectory, influenced by a variety of factors. The quarter began with rising prices as consumers showed increased willingness to spend, which boosted demand for commodities, including Valsartan. This uptick was initially supported by a positive economic climate. However, businesses operating in this environment faced rising supply chain costs due to escalating wages and high energy prices, which translated into higher costs for goods like Valsartan. By June, prices began to decline as consumer demand slowed, the market became overstocked, and freight rates fell. The central bank's decision to maintain interest rates contributed to financial strain on consumers, which further suppressed purchasing activity. Despite periodic disruptions in the global supply chain—such as port congestions in Asia and Northern Europe, and adverse weather conditions—the situation improved slightly due to easing geopolitical tensions and seasonal spikes in cargo volumes. These factors helped reduce transportation costs, contributing to the downward price trend. The price of Valsartan in Germany saw a significant -3% decline from the previous quarter and a further -4% drop when comparing the first and second halves of the quarter. The quarter concluded with Valsartan priced at USD 92,345 per metric ton (MT).
For the Quarter Ending March 2024
North America
The pricing dynamics of Valsartan in the North America region during Q1 2024 exhibited a nuanced interplay of various factors beyond the conventional top influences. Notably, the overall trend in pricing during the quarter was influenced by factors such as consumer confidence, inventory levels, warehousing capacity, disruptions in shipping routes, and the impending spring festival in China.
The prices of Valsartan experienced a gradual increase in January, driven by a resurgence in demand from downstream sectors and improved business sentiments. This positive trend continued into February, supported by consistent demand from end-user industries and anticipation of growth in overseas markets. The market outlook remained positive, although prices saw a slight decline in March due to a decrease in consumer sentiments and a focus on destocking excess inventories.
Looking at the broader context, the pricing trend for Valsartan in Q1 2024 exhibited a year-over-year increase compared to the same quarter last year, reflecting the impact of various market dynamics. However, it is worth noting that the pricing trend in Q1 2024 showed a decrease compared to the previous quarter of 2023. Finally, the final price for Valsartan (USP, FDA) CFR New York in the USA at the end of Q1 2024 was recorded at USD 93000 per MT.
Asia Pacific
During the first quarter of 2024, the pricing dynamics of Valsartan in the APAC region, particularly in China, showed a nuanced trend influenced by various factors. At the beginning of the year, there was a notable increase in demand from downstream sectors and a surge in export orders, leading to a modest uptick in prices in January. Market sentiment remained positive, supported by consistent demand from both domestic and international markets. Furthermore, prices continued to climb in February, driven primarily by limited inventories. The Spring Festival festivities resulted in the temporary closure or reduced operation of numerous factories, disrupting production activities and causing a shortage of supply in the market. However, prices began to decline towards the end of the quarter due to insufficient domestic demand and a lack of inquiries from overseas markets. Additionally, positive developments such as decreased input costs for manufacturers led to reduced production expenses, further influencing the pricing dynamics of Valsartan. Looking at the broader context, the pricing of Valsartan in the APAC region during Q1 2024 saw a year-over-year decrease compared to the same quarter last year. However, there was a slight increase in prices compared to the last quarter of 2023. In conclusion, the final quarter's price for Valsartan (USP, FDA) FOB Zhenjiang in China was USD 92000/MT.
Europe
During Q1 2024, the pricing trends of Valsartan in the European region were shaped by a variety of factors. At the outset of the year, prices remained stable as downstream industries maintained consistent operations, ensuring a steady demand for Valsartan. Manufacturers, benefiting from ample inventories and stable market demand, refrained from making significant price adjustments. However, prices experienced a moderate increase in February, driven by rising consumer demand, logistical challenges, and limited inventories within the domestic market. Interruptions in shipping and logistics, often associated with the Spring festival in China, led to delays and increased transportation costs. Consequently, these additional expenses were passed on to buyers, contributing to the upward trend in Valsartan prices.
Despite this, prices declined in April as the market struggled 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 of Valsartan remained sufficient, prompting market participants to adjust inventory levels by offering temporary discounts or implementing price reductions. In conclusion, the final quarter's price for Valsartan (USP, FDA) CFR Hamburg in Germany stood at USD 95500 per metric ton.
For the Quarter Ending December 2023
North America
In the North America region, the pricing of Valsartan in the fourth quarter of 2023 was influenced by several key factors. Firstly, there was a moderate increase in prices in October and November due to a surge in demand from end-consumers and limited inventories in the market. This was driven by an improvement in business activity and a moderation in inflation. Finally, in December, prices declined as demand weakened from both domestic and overseas markets.
In the United States, which experienced the most significant changes in Valsartan pricing, the market situation remained stable throughout the quarter. The prices increased initially due to the limited availability of goods persisted due to a surge in demand that surpassed the supply available in the market. Despite the persistent elevation in interest rates, a positive shift in US consumer confidence emerged following three consecutive monthly declines, playing a significant role in the upward price trend. However, consumer confidence saw a decline in December, primarily due to concerns about the economic outlook and expectations of prolonged high interest rates.
Despite these challenges, the U.S. economy displayed remarkable resilience, with positive developments observed in business activity and a slight easing of inflationary pressures. The price of Valsartan (USP, FDA) CFR New York in the USA for the current quarter is USD 97000 per MT.
APAC
In the fourth quarter of 2023 (Q4), the pricing of Valsartan in the APAC region was influenced by several factors. Firstly, the market for Valsartan experienced stability during this quarter, with moderate supply levels and high demand from end-user industries. However, the overall market sentiment remained cautious due to sluggish exports and geopolitical complexities. Additionally, the Chinese economy showed signs of finding stability, but external uncertainties and inadequate domestic demand posed challenges. In terms of specific country analysis, China had the most significant changes in Valsartan pricing during this quarter. The pricing trend in China showed a decrease of -45% compared to the same quarter last year, indicating a significant decline. There was no change in pricing between the current and previous quarter, suggesting a stable market. Furthermore, there was a -1% price decrease in the second half of the quarter compared to the first half. Overall, the pricing of Valsartan in the APAC region, particularly in China, was influenced by stable market conditions, moderate supply, and high demand from end-user industries. The latest price of Valsartan (USP, FDA) FOB Zhenjiang in China for the current quarter is USD 96000/MT.
Europe
In the fourth quarter of 2023, the pricing of Valsartan in Europe was influenced by several key factors. In Germany, the largest market for Valsartan in the region, the prices remained stable throughout the quarter. The country's economy showed signs of gradual stability, with improved conditions in the manufacturing sector. The decline in Germany's manufacturing sector showed signs of easing, raising optimism for a potentially milder recession. Additionally, consumer inflation in Germany decreased significantly, leading to an increase in consumer purchasing power and contributing to the stability of Valsartan prices. However, the market experienced a decline in prices in December, primarily due to rebound of inflation caused by rising food and energy prices, which placed a strain on consumers' purchasing power. This resulted in a weakened demand for Valsartan in the healthcare and pharmaceutical sectors. Moreover, the availability of Valsartan was abundant in the domestic market, as suppliers adjusted their prices to clear out excess inventory. The price of Valsartan (USP, FDA) CFR Hamburg in Germany for the fourth quarter of 2023 was USD 99500/MT.
