Development trends of Chinese API market

Apr 10
08:23

2012

David Yvon

David Yvon

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China is a big country in population resources with poor natural resources. With the rapid development of China's economy, supply and ownership of rare element large of oil and non-ferrous metals have become increasingly tens.

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The conflict between resources and economic development continue to be revealed. In pharmaceutical market,Development trends of Chinese API market Articles it is more prominent. For example, in the upstream resource-based products, the most obvious example is price of bismuth nitrate. In a short period of six months, pharmaceutical raw materials prices are from 80,000 RMB / ton rose to nearly 50 million / ton. And even for quite ordinary alumina potassium iodide and magnesium stearate pharmaceutical raw materials are also bullish.

As raw materials food products, accounting for a large proportion of pharmaceutical raw materials industry, we cooked the traditional antibiotics, semi-synthetic penicillins, nutrition, pharmaceutical excipients, there are different degrees of increase. This is because of energy shortages result, with plenty of grain for ethanol production of oil, food prices have raised.

In recent years, China Pharmaceutical Industry has been a rapid development, in a sense, is also habitat for the price obtained. Many pharmaceutical raw materials production, emit large quantities of pollutants on the ecological environment of the cost of destruction, far greater than the interests of the production of products obtained. Therefore, in environmental protection, take the key governance measures. Many pharmaceutical raw materials production enterprises also control out of the rectification, the national implementation of the first control after production cut-off regulation, limited production, forced to shut down a number of measures. Since this, it will inevitably lead to some pharmaceutical raw materials glutathione production costs substantial increase in reducing production, affecting the normal market supply and motivating the market.

Class pharmaceutical raw materials of petroleum resources, the type of bulk drugs also face the problem of rising prices, and short, the prices of bulk drugs, become almost the established formula. The reason is a resource shortage rise, prices of environmental governance are also an important issue, and so a lot of pharmaceutical raw materials price, the inevitable social development, which are irreversible prices. Seen in this light, the downstream products of the pharmaceutical raw materials will follow up, drug prices, the overall rise will be inevitable.

From the previous irrational low Canadian Competition of pharmaceutical raw materials production and operation of the entire industry is basically come out to capture the market price to win sales have become a thing of the past. Therefore, we do not flame in the market, but with each other to regulate the market by reducing production. When certain products due to the increase of shipments leaving the product prices fell sharply, once below production costs, production enterprises will invariably take the limited production, discontinued ways to reduce production in order to maintain the interests of the resveratrol industry to avoid the side effects brought about by the vicious competition and damage to the enterprise. Pharmaceutical industry and orderly competition and coordinated development, to avoid the ups and downs of the market and prices.

If do not take into account more factors, analysis of the impact prices is nothing more than from rising costs, market demand, industry competitors retreat and other practical factors. However, in the current oscillation of bulk drugs industries in China, there are more factors should be taken into account.Source:http://www.cospcn.com