The prices of Aspirin continued to rise in the United States market in May, driven by steady demand and limited supply. The increase is also attributed to the anticipated rise in the cost of Salicylic acid, a key raw material. The U.S. economy has shown resilience in 2024 despite persistent inflation and high interest rates. Consumer confidence in the U.S. rose in May, boosting consumer spending and contributing to the increase in Aspirin prices [ccd9e45f].
The United States is facing a deficit in medications, including Aspirin, due to production limitations and challenges within the supply chain. This presents an opportunity for Indian generic drug manufacturers to step in and mitigate the shortfall. Aurobindo Pharma, Sun Pharmaceutical Industries, and Gland Pharma stand to gain the most from this development. The scarcity of medications, coupled with the influx of Indian generics, is likely to drive up Aspirin prices. Shipping costs from India to Europe and the US are poised to increase, further impacting Aspirin prices [ccd9e45f].
A study by Harvard T.H. Chan School of Public Health highlights the life-saving benefits of promptly taking Aspirin after experiencing severe chest pain, potentially increasing demand for Aspirin. Aspirin prices are projected to continue rising in the coming months due to increased demand from the healthcare and pharmaceutical sectors. Global Aspirin prices have been rising since November 2023 due to growing demand and tightening supplies [ccd9e45f].
According to a recent report by ChemAnalyst, Aspirin prices are expected to remain elevated in Western markets in Q3 2024. This is due to increasing demand, supply chain disruptions, and constrained market supply. The peak season demand and shipping constraints have significantly impacted shipping costs, which will affect the prices of goods, including Aspirin. Inadequate infrastructure and logistical challenges are likely to drive up production costs and result in higher prices for Aspirin. The US economy shows signs of improvement, potentially leading to lower interest rates and increased consumer demand for Aspirin. German consumer sentiment is also expected to recover, contributing to an increase in Aspirin prices. Aspirin prices are anticipated to keep rising due to strong demand and constrained supply. Central banks in Western regions are likely to consider reducing interest rates, further bolstering the Aspirin market [4d9c79ca] [ccd9e45f].
Meanwhile, in Europe, Arginine prices have been on a downward trend since the start of June. This decline is largely due to end users holding sufficient inventory and adopting a more cautious approach to purchasing. The decrease in prices is supported by a decrease in China's manufacturing activity, which has led to a contraction in new orders and new export orders. China plays a significant role as a major exporter of Arginine to Europe. The eurozone economy has grown faster than expected, but ongoing inflation and the depreciation of the euro against the USD have contributed to the decline in Arginine prices. ChemAnalyst predicts that prices will continue to decline in the upcoming months due to ample supply and reduced demand. The Red Sea crisis may prompt market participants to replenish their inventories, leading to the clearance of old inventories at reduced rates. Additionally, a potential moderation in inflation in the eurozone could further contribute to the downward trajectory of Arginine prices [0cd74863].
In the United States, Naproxen API prices have been skyrocketing over the past two months, causing major concerns for drug manufacturers and potentially leading to higher costs for consumers. This escalation is attributed to supply chain disruptions, increased demand, and higher production costs in key producing nations. The severe congestion at China's major coastal ports is straining global supply chains, driving up costs for various goods, including pharmaceutical APIs like Naproxen. Major shipping carriers implemented a General Rate Increase (GRI), raising shipping costs per TEU. Scant inventories abroad are forcing U.S. players to hike prices and seek alternative supply routes. Sustainability concerns are prompting the exploration of eco-friendly substitutes for Naproxen. Industry leaders are calling for an investigation into the root causes of the Naproxen API shortages and price gouging [5d1c15ba].