Company News

TIGHT SUPPLY IN THE EXPORT MARKET OF APIS

The rate of resumption of work and production of API companies has steadily increased, domestic demand has been basically satisfied, and it is expected to meet overseas demand. The export of epidemic-related APIs may usher in a short outbreak period. However, it should be noted that due to the suspension of non-anti-epidemic medical needs, if the foreign pharmaceutical industry is suspended for a long time, it will have a negative impact on the overall export of Chinese APIs.

There are more than 1,500 API manufacturers in my country, and it is the largest API producer in the world. In normal years, the output of APIs is around 3 million tons. my country is also the world's largest exporter of APIs, exporting about 1 million tons in a normal year, which accounts for about 1/3 of the total output of APIs. In addition, my country is the world's largest producer and exporter of vitamins, antibiotics, antipyretic and analgesic drugs, anti-infective drugs, and sebum hormone drugs, accounting for more than 50% of the international market.

At present, the COVID-19 epidemic is spreading rapidly around the world, which has also had a great impact on the production and supply of medicines. Some countries are now reporting that the supply of APIs is tight. In this regard, the Ministry of Industry and Information Technology found that there are mainly several factors: First, in January and February this year, due to the impact of the epidemic, some enterprises in my country stopped work and production, and there was a temporary shortage of supply. Since February, due to the spread of the international epidemic, international transportation, especially shipping and sea transportation, has been greatly restricted and affected, resulting in some logistics and transportation difficulties and transportation difficulties.

Since 2020, the export volume of APIs has declined compared with the same period last year. Most products have dropped by 10% to 20%, and some varieties have dropped by 30%. However, the export volume of a few varieties increased year-on-year. We have repeatedly communicated with enterprises, and everyone reported that the main restricting factors for the decline in exports are the significant reduction in shipping and international shipping, and the increase in transportation costs. International transportation has become a bottleneck in the supply of our APIs.