North America

During the second quarter of 2023, the Paracetamol market in North America experienced notable shifts due to fluctuating dynamics between supply and demand. This resulted in a significant decline in Paracetamol prices within the US market for this period. Lower uptake in end-user industries led to an accumulation of Paracetamol in domestic warehouses, exerting downward pressure on prices. The recent decrease in prices of raw materials like 4-aminophenol, crucial for Paracetamol production, also contributed to this downward trend. As the quarter concluded, prices were assessed at USD 5030/CFR Houston, with an average quarterly decrease of 15.48%. Reduced freight charges further propelled the declining trajectory. Import volumes in the US dwindled as businesses grappled with surplus inventories. Concurrently, geopolitical factors prompted importers to favor East Coast ports. Sluggish demand and high inventories complicated market dynamics. While demand remained stagnant, retailers contended with surplus warehouse stocks acquired during the pandemic to meet increased demand and potential shortages.

Asia

The second quarter of 2023 witnessed substantial Paracetamol price reductions across Asian markets due to sluggish orders from both local and foreign sources. Throughout Q2, prices saw a pronounced downward trend, culminating in an assessment of USD 4810/MT Fob Shanghai. This represented an average quarterly decline of 16.10%. The manufacturing sector's contraction was indicated by the PMI falling below the 50-point mark during the quarter, reflecting the challenges of uneven post-Covid economic recovery. China's measures to temper its economy, including interest rate hikes and reduced liquidity, were concurrent with diminished buyer interest, sluggish offtake from downstream industries, and a lack of new inquiries from global suppliers. Some market participants resorted to destocking paracetamol API to optimize inventory and cash flow. 

Europe

Throughout the second quarter of 2023, the Paracetamol API market in Europe witnessed a downward trajectory. Paracetamol prices were evaluated at USD 4985/MT CFR Hamburg, reflecting an average quarterly decline of 16.80%. Germany experienced declining Paracetamol demand from the downstream sector and sluggish imports from exporting countries such as China. Increased trade activity provided some market buoyancy. Eased congestion and reduced ocean freight rates, including China-West Coast US routes returning to pre-pandemic levels, contributed to market stabilization. In March 2023, Germany's inflation rate dropped to 7.4%, driven by decreased energy costs. A surge in generic medication supply and shifting consumer preferences towards over-the-counter pain relievers impacted Paracetamol demand. Notably, IOL Chemicals and Pharmaceuticals obtained a Certificate of Eligibility (CEP) from the European Directorate for the Quality of Medicines & Healthcare (EDQM), enabling Paracetamol export to the European market and marking a significant achievement for the company.