China's raw material exports continued to grow rapidly in 2011

In 2010, the export volume of western medicine raw materials in China was 4.98 million tons, an increase of 23.39% year-on-year; the total export volume was 20.3 billion USD, an increase of 26.19% year-on-year; the average export price was US$4.07/kg, an increase of 2.27% over the same period of last year. The export volume and export amount of APIs have grown by more than 23% year-on-year, and the average export price has also increased slightly. It can be seen that in 2010, China's bulk drug export market showed a strong recovery.

From the perspective of the major categories of APIs, the export volume of the 19 APIs has increased at different levels year-on-year, and the export volume of 63% of the major products has increased by more than 20%. Among them, cardiovascular system drugs, cephalosporins, respiratory drugs, and macrolides increased by more than 50%. Exports of 84% of the major categories increased, and the use of cardiovascular drugs, lincomycins, cephalosporins, digestive drugs, and respiratory drugs increased by more than 40%, and tetracycline exports decreased by 40%. The average export price of 68% of the major species has increased, the largest increase in tetracyclines, up 61.5%, the average price of macrolides, hormones, export growth also exceeded 20%. There are 10 categories of large-scale varieties of prices and prices, accounting for 53%.

As far as capital classification is concerned, private capital is already the main force for the export of raw materials in China. The proportion of exports accounted for 46.51%; foreign-funded enterprises exceeded state-owned enterprises, and the proportion of exports accounted for 29.41%; and the proportion of state-owned enterprises was only 24.05%. It can be seen that the raw material drug industry is very competitive.

Judging from the current situation, China's raw material medicine exports in 2011 will show the following trends:

The export of APIs will continue to maintain rapid growth. According to IMS forecasts, the global pharmaceutical market will grow by 5% to 7% in 2011, reaching US$880 billion. The global pharmaceutical market will grow at a compound annual growth rate of 4% to 7%. Therefore, the demand for APIs in the international market is also steadily increasing.

China has now become the world's largest producer of APIs. In 2008, it accounted for 9.3% of the global outsourcing market, while the market share of generic APIs outsourcing reached 37.8%. China's more than 60 kinds of bulk drugs have strong competitiveness in the international market. VC, VE, penicillin, citric acid, antibiotics, paracetamol, and other important varieties occupy a decisive position, and there are obvious competitive advantages in the bulk varieties. In recent years, although production costs have risen, companies are focusing more on potential innovation, self-digestion, and limited export prices, so Chinese raw material prices are still quite competitive. In addition, Chinese companies' efforts to pass high-end quality certification, develop expired patented APIs, undertake international pharmaceutical R&D production outsourcing, and multinational companies transfer pharmaceutical production to China, etc., China's API exports are stable and high-speed development is expected to take place. It is expected that in 2011 it is expected to maintain a growth rate of around 20%.

The growth of exports will be mainly reflected in the increase in the number, and prices will flat or slightly increase the rigid demand of the pharmaceutical market. Determined the demand for the amount of raw material drugs, China's huge production capacity also needs to be digested by the international market, which will promote the steady growth of China's raw material drug exports. However, at present, China’s bulk APIs have overcapacity, intense competition, slow international economic recovery, and devaluation of many countries’ currencies, it is difficult for China’s raw material drug export prices to rise. However, the increase in various aspects of costs also leaves export prices little downside. , raw material prices may remain stable or slightly higher.

Sam Splint

Dongguan City Risen Medical Products Co., Ltd. , https://www.risenppe.com