Acetaminophen Price Trend and Forecast

Regional Market Overview

Get the latest insights on price movement and trend analysis of Acetaminophen in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

For the Second Quarter of 2022

Asia

Due to increased demand from the downstream pharmaceutical sector, acetaminophen prices increased in the second quarter of 2022. The supply chain in local and international markets was affected by the lockdown imposed on Shanghai, the financial hub of China. Beginning with the second half of Q2 2022, government policies imposed price increases of 10%, which also had an impact on acetaminophen prices.

In addition, the pandemic first increased demand for analgesics like paracetamol, which in turn drove up demand and pushed up operational costs, causing prices to rise sharply. Prices for acetaminophen were reported to be USD 10,000/tonne FOB Shanghai at the end of Q2 2022. In India, the National Pharmaceutical Pricing Authority announced a price hike of 10.7% (in April) for nearly 800 scheduled medicines including acetaminophen (or paracetamol).

Europe

Due to a rise in energy prices, which raised the drug's pricing value, the market prices of acetaminophen climbed towards the end of the second quarter of 2022 in Europe. The continuous geopolitical unrest caused the price of oil to soar, which put pressure on the price of phenol. Additionally, the market was helped by the surge in demand for acetaminophen by several healthcare industries at the end of March.

The price of acetaminophen on the European market was impacted by the implementation of stringent controls and the lockout in exporting nations. The price trends for acetaminophen accelerated throughout the second quarter due to rising manufacturing expenses as well as increased freight costs.

North America

Due to growing demand from the downstream pharmaceutical industry and other logistical challenges, acetaminophen prices rose in the second quarter of 2022. The supply chain in local and international markets was interrupted by the implementation of lockdowns and tight rules in exporting nations. Additionally, prices rose sharply as a result of both rising operational costs and soaring demand. The second quarter saw a rise in acetaminophen/paracetamol costs as a result of cargo limitations and route disruption.

For the First Quarter of 2022

Asia

Acetaminophen's raw material is phenol, which is produced industrially. Due to Hindustan Organics' plant turnaround in early January, the Asia market saw a constant climb in price trend for the quarter ending March. Furthermore, prices continued to grow due to a supply imbalance from China as a result of market closures during the Winter Olympics and Lunar Holidays.

Furthermore, the upstream crude oil price surge had an impact on phenol's price trajectory. Demand from downstream automotive and electronic sectors grew in the regional market, indicating an upward price trend. Prices in India were set at 1785 USD/MT from then on. Acetaminophen prices were impacted as a result of this price trend of its raw material.

Europe

Due to an increase in regional demand, raw material prices throughout Europe increased during the quarter ending in March. Aside from geopolitical tensions, petroleum costs have skyrocketed, putting pressure on the phenol price to rise.

The increasing oil price has had a significant impact on petroleum feedstocks, which has influenced road and rail transportation. However, the price rose due to a surge in demand from the cosmetics industry as a result of an increase in youthful customers. As a result, the price in Germany increased to 1805 USD/MT, affecting acetaminophen prices as well.

North America

In North America, the price of phenol increased little in the first quarter of 2022. The importing nations' strong demand for phenol derivatives, which have uses in downstream cosmetics and the automobile industry, has resulted in a progressive price increasing trend. Aside from the increased demand, the Russian-Ukrainian conflict caused shipments to be rerouted, resulting in delays in supply on the international market.

Furthermore, container freight prices were at an all-time high as the US cargo deficit remained. In addition, the rising price of upstream crude oil has had an impact on the feedstock benzene, which supported the higher price trajectory of phenol in the region. As a result, in March, FOB USA prices settled at 1410 USD/MT. Acetaminophen prices followed a similar trend. 

For the Fourth Quarter of 2021

Asia

Following the festival season in October, market sentiments for the raw material in India continued to sway during the quarter ending in December. After a lengthy period of energy crises, China's availability of phenol improved, easing its supply in the Indian market. In mid-November, Hindustan Organics implemented a turnaround at its phenol/acetone factory in India, citing shrinking profitability.

The delayed restart of Hindustan Organics' phenol facility resulted in a slight increase in its costs. However, prices dropped dramatically again in late December, owing to a drop in foreign demand for the substance. Prices in India fell to 1480 USD/MT Ex-Dahej in December as demand dwindled.

Europe

Prices of phenol in Europe have been steadily declining in the last two months of the quarter ending in December. Supply chain disruption and freight rates began to diminish in Q4, but the regional energy crisis resulted in increased plant operating costs. Despite the fact that the cost of producing Phenol/Acetone remained stable, a drop in enquiries owing to the year-end slowdown resulted in a protracted dullness in the demand pattern. Phenol FD prices fell to USD 1725 per MT in December due to weak demand and increased supplies.

North America

In the quarter ending in December, North America had a steady fall in demand despite a significant increase in Phenol supply (RM). Following the hurricane Ida in Q3, supplies steadily improved as plant operations were resumed. By the fourth quarter, plant operating rates had nearly returned to normal, resulting in abundant product availability.

The demand for solvents in North America has been reduced due to a seasonal slowdown in demand, particularly from the paints & coatings and automotive industries. Furthermore, due to inventory build-up in several countries, export enquiries remained low. In late December, however, enquiries grew again, stabilising Phenol's downward trend in the area market. In December, phenol FOB prices in the United States were estimated to be USD 1470 per MT. Acetaminophen prices were impacted in a similar way. 

For First, Second and Third Quarters of 2021

Asia

In the first quarter, phenol supply in Asia Pacific improved as numerous production units completed their maintenance turnaround periods and resumed normal operations. However, supply was constrained for a few weeks as several Chinese players scaled their operations over the Chinese New Year.

The market witnessed restocking procedures in mid-March to fill stocks, followed by rebound consumption from Phenolic Resin makers, which kept demand strong. Acetone, a by-product, remained in great demand. Phenol prices in the region rose as a result of the strong demand and regular supply. In the market, the quarterly average price of the chemical in India was about 1204 USD/MT, while CFR prices for Q1 deliveries were estimated at 1016 USD/MT.

In the third quarter of 2021, the general market prognosis for the feedstock in Asia Pacific was mixed. In Q3, the supply fundamentals of phenol and its many derivatives remained stressed, as numerous factories in Asia and Europe were heard shutting down owing to a variety of operational issues.

In September, China's supply remained constrained because numerous facilities' running rates were maintained low to comply with the government's dual-energy standards. Due to sustained offtakes from the downstream automotive and construction sectors, demand was stable in Q3. In the third quarter of 2021, the price of phenol in India increased from 1524 USD/MT to 1608 USD/MT.

Europe

In the first half of Q1, supplies of phenol in the European region remained constrained, as several major plants were on maintenance turnaround since the previous quarter, exacerbated by a slowdown in industrial and commercial activities due to the European region's economy slumping amid a new COVID lockdown.

The downstream industry, on the other hand, saw a boost in demand as the region's automobile sector progressively recovered. Phenolic resin sales were strong in the first quarter, owing to increased demand from the construction industry, which then declined at the end of the quarter.

In the third quarter of 2021, the price curve for the raw material in Europe began to decline. The regional pricing of phenol declined due to a drop in upstream benzene prices, while the availability of its feedstock eased, causing phenol to continue the slide in Q3 2021. From July to September, the FD Hamburg price fell from 1710 to 1485 USD/MT, impacting acetaminophen prices as well. 

North America

Plant turnarounds significantly hampered phenol supply in the first three quarters of 2021, as two upstream cumene factories went through turnarounds, resulting in feedstock shortages. Production disruptions caused by the severe freeze weather conditions in the US Gulf area led in a record surge in phenol prices.

The shutdown of Olin Corp. in the United States in mid-February had an impact on market supply. The demand for phenol was driven by the housing sector's performance, as an extensive infrastructure plan aided the non-residential sector's expansion. In the week ending March 19th, Texas prices soared above 2570 USD/MT, a new high. Due to a global shortage of phenol, some supplies were diverted to Europe.

In the third quarter of 2021, the pricing in North America was stable and balanced. As output levels approached pre-storm levels, the sector observed improving demand and supply dynamics. When compared to Q2, the price of phenol dropped significantly in Q3.

In August, the price was estimated to be between 1280 USD/MT and 1320 USD/MT FOB Texas. As the industrial sector perked up to meet consumer attitudes, demand from downstream Nylon, Epoxy Resin, and Polycarbonate production facilities increased dramatically in Q3. Throughout the quarter, demand from the automotive, building, and construction sectors improved.

For the Year 2020

Asia

Supply overhang caused by substantial capacity increases of 400 KTPA from China's Zhejiang Petrochemicals kept market sentiments in the Asian phenol (RM) market in the doldrums. The situation was made worse by the restart of operations at Mitsui Chemicals in Osaka, Japan, and Chung Chun PC in China, with no additional turnarounds expected until the end of the following quarter. Furthermore, manufacturers in Northern Asia ran their operations close to capacity, but product stocks remained manageable thanks to robust demand for specific derivatives.

Europe

The market saw excess cargoes of phenol even after output from several key producers was stopped to reduce supply overhang, while downstream companies made no significant benefits. Despite the fact that two of the most recognised producers, Domo Caproleuna and Seqens, underwent a maintenance turnaround, the dull offtakes of phenol in the European market were not revived.

North America

The phenol market forecast in North America remained stable, as turnarounds from major manufacturers such as SABIC and Shell outstripped surplus supply. Because Asia was already swamped with the raw material supply as a result of China's large capacity increases, North America's export potential shrank significantly as demand from its key clients fell.

Despite the fact that certain downstream industries, such as automotive and construction, showed signs of recovery, participants were wary about lingering demand concerns due to an increase in coronavirus numbers in some regions of the region.

Procurement Resource provides latest prices of Acetaminophen. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.