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    Home > Chemicals Industry > China Chemical > What impact will the price increase of a large number of APIs have on pharmaceutical equipment companies?

    What impact will the price increase of a large number of APIs have on pharmaceutical equipment companies?

    • Last Update: 2021-09-14
    • Source: Internet
    • Author: User
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    Chemical machinery and equipment network market analysis chemical machinery and equipment
    In fact, there have been a large number of news of price increases for APIs recently.
    For example, on April 7, Shandong HSBC Petrochemical Co.
    , Ltd.
    raised its new propylene offer from RMB 50/ton to 8,250 yuan/ton; Dongying Hualian Petrochemical Plant Co.
    , Ltd.
    raised its new propylene price from RMB 50/ton to 8,153 yuan/ton.
    .
    Qicheng Holding Group’s new propylene quotes have been raised, rising by RMB 50/ton to RMB 8,150/ton.

     

    Revenue of my country's API industry will exceed 300 billion in 2021
     
    Revenue of my country's API industry will exceed 300 billion in 2021

    The industry believes that the price increase of some APIs is mainly due to the fact that my country's API industry is currently undergoing a normalized "supply-side" reform driven by high environmental protection policies, improved consistency evaluation quality, and related review and other policies.
    This is caused by the increase in concentration and the shift to "high barriers, high investment, and security".
    In addition, coupled with the impact of the epidemic, the market supply of some API products has experienced frequent fluctuations.

     

      However, in addition to these effects, as the upstream industry of the pharmaceutical preparation industry, the API industry is in fact a general market consensus under the rapid growth of drug sales, and its future development trend is good.
    my country, as a major producer and exporter of APIs, has become increasingly prominent in the pharmaceutical industry in recent years for specialty APIs and intermediates.
    In terms of output value, the total value of the current API market is about US$155 billion, and the total value of my country's API market accounts for about 50% of the total scale; from the perspective of market growth, the average growth rate of the domestic API market is also Maintained above 8.
    4%, which is much higher than the 4%-5% growth rate of the API market.

     

      On the whole, my country's API industry has strong growth momentum.
    Especially in recent years, my country's API industry has continued to expand its development space under the background of accelerating the adjustment of the product structure of my country's API companies to special APIs.
    According to the "In-depth Investigation and Investment Prospect Forecast Report of China's API Industry for 2020-2024", in 2019, the size of my country's API market has reached 257.
    929 billion yuan, a year-on-year increase of 6.
    4%.
    According to this trend, the industry predicts that the main revenue of my country's API manufacturing industry will reach 320.
    79 billion yuan in 2021.

     

      The API industry will use pharmaceutical equipment to accelerate transformation
     
      The API industry will use pharmaceutical equipment to accelerate the transformation of
    pharmaceutical equipment
      However, it is worth noting that while my country's API industry is facing huge development opportunities, it is also facing very big challenges, especially with the continuous advancement of environmental protection pressure, the API industry urgently needs to accelerate its transformation and upgrading.
    Industry insiders believe that in the face of the new market situation, the API industry needs to use the pharmaceutical machinery industry to actively accelerate the adjustment of the industrial structure and solve the problems of low-price competition, serious waste of resources, and overcapacity.

     

      *, APIs are often accompanied by waste water, waste gas, waste residue and other by-products in the production process.
    In recent years, under the background that the country has paid more and more attention to environmental protection and clearly put forward higher environmental protection requirements for the development of the API industry, the industry expects that the API pharmaceutical equipment industry may also usher in more development opportunities.
    In particular, low-cost, high-efficiency, energy-saving and environmentally-friendly pharmaceutical equipment may lead to new trends in the production of raw materials.

     

      It is understood that the equipment for the production of raw materials can be divided into equipment for synthesis reaction, fermentation, extraction, crystallization, metering and material storage, such as reaction tanks , fermentation tanks, sterilization filters, automatic crushing and packaging integrated machines, and feeding machines Wait.
    In the different production links of APIs, these production equipment have different missions.
    According to the author's understanding, in order to respond to market competition and meet user needs, many domestic pharmaceutical equipment companies have begun to improve cleanability, airtightness, control accuracy of materials and parameters, and reduce costs and increase efficiency.

     
    Reaction tank
      For example, a heat exchanger manufacturer focuses on technological innovation.
    By establishing an experienced technical team specializing in heat exchange equipment, the company is committed to providing customers with effective solutions that reduce costs and increase efficiency.
    It is reported that large-scale and energy-saving are the development direction of the heat exchanger industry in terms of products and technology.
    In addition, the company is also making continuous efforts in the development and application of new materials and the upgrading of product technologies.

     

      Conclusion
     
    Conclusion
      In general, with the continuous development of the API industry, API equipment companies will also face more new requirements and new demands.
    In this context, for related equipment companies, it is necessary to continuously innovate technologies, develop new products and equipment, and increase the training of professional talents in order to better adapt to the ever-changing demand for pharmaceutical production and boost The API industry is developing towards higher quality.

     

      Original title: What impact will the price increase of a large number of APIs have on pharmaceutical equipment companies?
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