Pharmaceutical preparation of raw materials within the export market downturn chain reaction - bulk
Bulk drug industry's sluggish sluggish exports in the first 62 sessions of Xi'an has been reflected at the API. API will be in shortly after the May 22 announcement said the Nisshin and into, for VA product demand and stocks sharply higher, the company decided in late May to late August shutdown VA; the same time, due to production equipment shutdowns, in late June to mid-August shutdown VE. Affected by this new and as predicted in the first half net profit attributable to parent company owners will be up by 60% to 80%. The first quarter and into the new year net profit fell 47.68 percent.
Believe that this news will make investors "are injured." In fact, from the end of last year, raw material industry in integrated multiple factors Cooperation Under the complex with the changes.
Volume and price of change VA, VE discontinued only for the current API "Quantity Price Double Down" business response.
By Financial Crisis and the real economy recession, in the first quarter, vitamins price of international and domestic markets, sales of both fell. One, VE prices fell in October last year 25%, on sales down nearly 60%; VA 50% price cut, sales also dropped significantly. Discontinued in the new and as announced before, the world's vitamin "big brother"?? DSM decided to stop production of its Chinese company in April VA, cut VE. Domestic production still needs vitamins twice, follow the situation can hardly be optimistic.
"Demand down, prices down" is now a true portrayal of bulk API. It is understood that a larger proportion of antipyretic analgesics in the first quarter of this year, a company's bulk drug sales decreased 6.5% over the same period the previous year, six major varieties of sales decreased 5% year on year to 15%, in addition to a species because of the operation better coordination of the price increase, most of the varieties on average 14% ~ 20% price reduction. In another development, in order to Antibiotic Class for the main of a company, a quarter of the total API sales dropped by about 9%, leading products of penicillin industrial salt for more than 37% decline in average price.
Had been high hopes of expanding domestic demand, the result is not satisfactory move into April, with the bulk drug formulations interdependent market transactions tend to taste flat. April new Medical reform Implementation of the advice, the program successively introduced, together with the industry to the stock of the results, the enthusiasm of a time getting goods distribution companies rising, there was a rare "Indian summer." Since then around the new medical reform plan is still under development, essential medicines list has been heard from since introduction, preparation reoccurrence of depression, which is expected.
However, the veterinary drug market is the only bright spot. Although by the influenza A H1N1 Influenza Affect sales decreased, but people use APIs in the first quarter of negative growth in exports, domestic sales declined compared to the growth of veterinary medicine raw material for the rare special. Veterinary medicine factory in China more than about 1800, by the production of small-scale, serious capacity constraints of R & D, veterinary preparations mostly rely on raw materials for human use pharmaceutical drugs or import; veterinary market, mainly in Sichuan, Henan, Shandong, etc. agricultural province, the market Marketing More favorable, the main problems facing the disorderly competition, subject to domestic animal and large affected by outbreaks.
Industry with this in mind, the 62nd Xi'an API will reach a consensus: the global economic crisis has not bottomed out, international demand remains in the doldrums, has spread to the real economy, industrial structure issues highlighted.
The current concerns of the industry, the "capacity price double down" situation ends when? The central bank on May 12 released the data, April corporate goods price index (CGPI) record in 1999 since the implementation of low (in the first 4 months were down 4.2%, 6%, 6.6%, 7.1%), April chain rose 0.1%. Inflection point in accordance with generally-leading PPI CGPI about 6 months of conclusion, the price back up may appear in the third quarter to early fourth quarter. If the industry can open the production of cut-off limits, do not rule out in advance of this date.
Among them, the API is good news for the upstream Chemical industry First up is once the market of raw materials down. 1 to 2 months of this year the market price lower chemical, 3 to 4 months there some slight rebound into May sulfuric acid, acetic acid, phenol and other chemical raw materials mainly come down again. Price stabilization if the API will help corporate profits rise.
Believe that this news will make investors "are injured." In fact, from the end of last year, raw material industry in integrated multiple factors Cooperation Under the complex with the changes.
Volume and price of change VA, VE discontinued only for the current API "Quantity Price Double Down" business response.
By Financial Crisis and the real economy recession, in the first quarter, vitamins price of international and domestic markets, sales of both fell. One, VE prices fell in October last year 25%, on sales down nearly 60%; VA 50% price cut, sales also dropped significantly. Discontinued in the new and as announced before, the world's vitamin "big brother"?? DSM decided to stop production of its Chinese company in April VA, cut VE. Domestic production still needs vitamins twice, follow the situation can hardly be optimistic.
"Demand down, prices down" is now a true portrayal of bulk API. It is understood that a larger proportion of antipyretic analgesics in the first quarter of this year, a company's bulk drug sales decreased 6.5% over the same period the previous year, six major varieties of sales decreased 5% year on year to 15%, in addition to a species because of the operation better coordination of the price increase, most of the varieties on average 14% ~ 20% price reduction. In another development, in order to Antibiotic Class for the main of a company, a quarter of the total API sales dropped by about 9%, leading products of penicillin industrial salt for more than 37% decline in average price.
Had been high hopes of expanding domestic demand, the result is not satisfactory move into April, with the bulk drug formulations interdependent market transactions tend to taste flat. April new Medical reform Implementation of the advice, the program successively introduced, together with the industry to the stock of the results, the enthusiasm of a time getting goods distribution companies rising, there was a rare "Indian summer." Since then around the new medical reform plan is still under development, essential medicines list has been heard from since introduction, preparation reoccurrence of depression, which is expected.
However, the veterinary drug market is the only bright spot. Although by the influenza A H1N1 Influenza Affect sales decreased, but people use APIs in the first quarter of negative growth in exports, domestic sales declined compared to the growth of veterinary medicine raw material for the rare special. Veterinary medicine factory in China more than about 1800, by the production of small-scale, serious capacity constraints of R & D, veterinary preparations mostly rely on raw materials for human use pharmaceutical drugs or import; veterinary market, mainly in Sichuan, Henan, Shandong, etc. agricultural province, the market Marketing More favorable, the main problems facing the disorderly competition, subject to domestic animal and large affected by outbreaks.
Industry with this in mind, the 62nd Xi'an API will reach a consensus: the global economic crisis has not bottomed out, international demand remains in the doldrums, has spread to the real economy, industrial structure issues highlighted.
The current concerns of the industry, the "capacity price double down" situation ends when? The central bank on May 12 released the data, April corporate goods price index (CGPI) record in 1999 since the implementation of low (in the first 4 months were down 4.2%, 6%, 6.6%, 7.1%), April chain rose 0.1%. Inflection point in accordance with generally-leading PPI CGPI about 6 months of conclusion, the price back up may appear in the third quarter to early fourth quarter. If the industry can open the production of cut-off limits, do not rule out in advance of this date.
Among them, the API is good news for the upstream Chemical industry First up is once the market of raw materials down. 1 to 2 months of this year the market price lower chemical, 3 to 4 months there some slight rebound into May sulfuric acid, acetic acid, phenol and other chemical raw materials mainly come down again. Price stabilization if the API will help corporate profits rise.
