| By Liu Yuanyuan, Asia Manufacturing Pharma |
| Wednesday, 29 April 2009 |
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China, the world's largest producer and exporter of active pharmaceutical ingredients (APIs), saw a double-digit surge in exports by value in 2008, thanks to a 35 per cent growth in the average export price. Exports of APIs to Asia, Europe and North America, the three major export destinations which account for a combined 90 per cent of the country's total, experienced an increase of between 24 per cent and 30 per cent during the year in spite of the worldwide financial crisis. |
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China's share in the global API market did not fall along with the price hike, providing evidence that demand from overseas markets remained stable.
Against the backdrop of the worldwide economic downturn, however, China's API sector is still challenged by a number of unfavorable factors.
The price fluctuations for APIs raise concerns among international buyers, whose purchasing power has been on the decline due to the |
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financial crisis, while Chinese API manufacturers' move to expand capacity has caused supply to exceed demand.
In addition, currency depreciation in major export destinations, together with the rising protectionism against China, is putting more pressure on the country's exports. According to statistics released by the China Chamber of Commerce for Import & Export of Medicines & Health Products, the country recorded a year-on-year decline of 15.2 per cent in combined imports and exports of APIs to US$3.07 billion during the first two months of 2009, accounting for 45.8 per cent of the foreign trade value of pharmaceutical and health products.
Imports dropped 21.3 per cent to US$813 million, while exports fell 12.7 per cent to US$2.26 billion. Despite those challenges, international buyers are still bullish about the Chinese API manufacturing sector. China's domestic and foreign API producers are now striving for a chance to exhibit at the CPhI & ICSE China 2009 to be held in June. Statistics show that so far 30 per cent more visitors have pre- |
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registered at the official website to attend the event when compared to the same time period last year.
A spokesperson for the chamber pointed out that outlook for China's API sector remains optimistic, mainly because the global pharmaceutical market is on track to grow more than 4 per cent in 2009, with emerging markets expected to see the fastest growth, while demand for APIs is expected to continue to increase.
Furthermore, the country's domestic API producers are accelerating their efforts in independent R&D and international expansion. Data show that 158 types of APIs in China have obtained COS certificates, while 472 have received approval from the FDA.
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