As one of the world's top three ibuprofen API manufacturers, IOL Chemicals has an annual production capacity of 10,000 to 12,000 metric tons, accounting for nearly 30% of global ibuprofen supply. SMS Pharma, India's second-largest ibuprofen producer, is currently operating at only 40% capacity and is unable to close the supply gap in the short term.

Driven by the tightened supply, spot prices for ibuprofen APIs and related intermediates rose by 35% to 60% in mid-to-late June. Pharmaceutical manufacturers across Europe and the United States have moved quickly to secure alternative suppliers in China and Southeast Asia. The incident has also triggered a broader stocking wave for other antipyretic and analgesic APIs, including paracetamol and aspirin, with European pharmacies placing advance orders to secure their Q3 raw material supply.

Information Sources

1. Industry Report: Tank Accident Disrupts India's Ibuprofen API Output, Global Supply Faces Pressure

2. Local Industry Media Release: Fire and Tank Explosion Incident Occurs at IOL Chemicals' Punjab Manufacturing Plant

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