Api Market Watch :7-aca Price Cut Oversupply Or “boss” Of Launching An Attack – Bulk Drugs

By | December 20, 2017

API recently cut prices as the market focus. After the Spring Festival in 2008, is amoxicillin penicillin industrial salt prices have increased with the passage of time ,7-ACA market price of the diving position, from 950 yuan / kg straight down 750 yuan / kg and returned two years ago level.

Insiders pointed out that the 7-ACA price cut, “Big Brother” Shijiazhuang Pharmaceutical Group is the initiator. The goal is to have started formal production targeting the health element of the production base in Jiaozuo and federal pharmaceutical production base in Pengzhou.

With the Shijiazhuang Pharmaceutical Group take the lead in price reductions, and other 7-ACA production enterprises is of course behind. Until now ,7-ACA market price is still maintained at 750 yuan / kg price.

Lower prices due to supply and demand

7-ACA for the synthesis of key intermediate in a variety of cephalosporins, is three antimicrobial spore nucleus is one of more than 50 domestic production of cephalosporin raw materials needed to do it. It and the penicillin industrial salt, amoxicillin and raw materials are in the same line of products, in the past most of these types of APIs Qi Qi Zhang down. This time, penicillin and amoxicillin price of industrial salt are up, why the 7-ACA price is steep drop it?

Related to the trade speculation, stone medicine stakeholders noncommittal, but simply that “the market is limited.” However, Hui-Fang Wu, principal analyst in the health network view, lead to 7-ACA price or market fluctuations due mainly to changes in supply and demand. “This spring ,7-ACA has a clear oversupply. The market is saturated, price cuts are inevitable.”

It is reported that domestic agents 7-ACA downstream producers are mainly Cabernet Franc, United Laboratories, Kazakhstan medicine, anti-Fu, Lu and other manufacturers of anti. Kazakhstan medicine, Lu Kang and others who have a complete industry chain, the use of 7-ACA is essentially produce their own, and rarely purchased. The United Laboratories, Cabernet Franc and other downstream products increasingly rich and complete preparation of the manufacturers, in order to get rid of the kinds of situation, have begun to extend to the upstream, to establish their own production lines are to achieve the optimal combination of industry chain. It is reported that the two enterprises had been formally put into 7-ACA.

“We currently produce 7-ACA is mainly inside sales, direct supply Livzon Group, but is also beginning preparations for some enterprises to provide product trial downstream end of this year production will reach 1,200 tons.” Healthy Vice President Qiu Qingfeng Yuan said. It is reported that health dollars hope 2 expansion to their 7-ACA market-leading position.

2007 7 30, Lizhu agreement with Jiaozuo health dollars, from August 1, 2007 to December 2008 31, Livzon Synthetic Pharmaceutical Co., Ltd. purchased by graded approach to the Jiaozuo total of 541 health per purchase tons of 7-ACA.

And healthy network tracking data show that the federal Pengzhou pharmaceutical, put into operation in addition to some personal use, the part of the self of 7-ACA has achieved export.

“From the previous ‘buy’ now ‘no buy’, only the Cabernet Franc and federal drug demand reduction to make at least 20%.” Away in that market supply is growing, shrinking demand, regardless of Shi drugs have run into the intention of the new ,7-ACA price cuts are inevitable.

Industry pointed out that in the cephalosporin series and the macrolide family of agents in production ,7-ACA application of substitutability is very strong. If the 7-ACA also continue to remain at 900 yuan / kg prices running high, agents may choose not to use factory 7ACA. “In other words, if the upstream factories do not want to be the market impact of 7-ACA can only lower prices for such products.”

Harbin Pharmaceutical Group Pharmaceutical Factory Marketing Minister Jin also said that after the Spring Festival reason why 7-ACA price drop, the key is “market or surplus.”

I am an expert from China Building Materials, usually analyzes all kind of industries situation, such as inflatable water tube ,