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The development of API
Jan 24, 2018

According to the market analysis report of the domestic chemical products released by the investigation organization, it is pointed out that the economic operation of the chemical pharmaceutical industry in 2013 is not optimistic, but the growth is still worth looking forward to. Innovative enterprises will promote the transformation and upgrading of the industry. In addition, with the development of electronic commerce in the chemical pharmaceutical industry, entering the trading platform has become the only way for innovative enterprises. The development of traditional API is limited, and transformation and upgrading need to be chosen. As Shenzhen innovative enterprises enter the southern trading platform, more and more API suppliers have begun their own business.

Domestic and international environment for the development of API

China is a big country in the production of API. In 2012, the output of raw material medicine was 1 million 360 thousand tons, up 9.05% from the same period, and the output was the first in the world. The scale benefit has been achieved by the low cost and environmental pollution produced in China. At present, the price is generally rising and the environmental management is continuously strengthened. The cost advantage of the industry development is not obvious.

Internationally, China's largest competitor, India, though has less industry scale than China, has obvious advantages over China in terms of cost advantages and industry development speed.

Problems in the development of China's API

First, under the influence of the financial crisis, the shortage of international buyers, the decline of purchasing power or the extension of the purchase cycle not only affect the sales volume of China's API, but also increase the operational risk of export enterprises.

Second, the rise and fall of the price has aggravated the concern and wait-and-see of the international buyers, which has affected the steady development of the market of the API.

Third, a large increase in the price of some raw materials, resulting in the impulse to expand the capacity of the enterprise, aggravated the contradiction of the market supply oversupply.

Fourth, the devaluation of the main export destination countries and rival countries has reduced the price competitiveness of Chinese raw materials and increased the difficulty of export.

Fifth, the financial crisis has prompted the intensification of international trade protectionism and further worsened the environment of some of the export markets in China.

The development prospect of Chinese api

First of all, the global drug market is expected to maintain more than 8% growth in 2014, and the new pharmaceutical market is likely to maintain a larger increase. The international and domestic market demand for API will continue to grow.

Secondly, many kinds of raw materials in China have a high market share in the international market, and the advantages of their scale are obvious. In the short term, the other countries can not replace them.

Third, although the price of Chinese API has increased considerably due to multiple factors, these rising factors are rigid, and in 2013, it will not be able to drop substantially and affect the total export volume of China's API. From 2012, the average price of raw material imports increased by 28.21%, and the comparative advantage of China's API still exists when the price of global raw materials is generally rising.

Fourth, Chinese enterprises should avoid the homogenization competition, develop the characteristic raw material drugs, and aim at the developed countries market by many enterprises, and actively improve the quality of export products through the certification of high-end market, and expand the export space of Chinese API.

Fifth, the State encourages the continuous introduction and implementation of export policies, and will also play an important role in promoting the export growth of API.

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