China's exports of raw materials increased against the trend

Since the beginning of this year, the new coronary pneumonia epidemic has become a major event affecting global economic and trade development. Affected by this, from January to May, my country's merchandise exports fell by 4.7% year-on-year (in RMB), of which January-April fell by 6.4% year-on-year. The export of chemical raw materials, which are closely related to the fight against the epidemic, declined first and then moved against the trend. From January to April, my country's exports of raw materials reached 11.841 billion US dollars (contract 83.697 billion yuan), an increase of 5.35% year-on-year. In the context of limited global pharmaceutical raw material production capacity and growing demand, my country's strong pharmaceutical raw material production and export capabilities have effectively supported the global anti-epidemic cause.

Increased export volume helps global anti-epidemic

From January to April, the export volume of raw material medicines in my country increased by 16.68%, reaching 3.897 million tons. From the monthly data, the export amount and quantity in January were basically the same as last year; in February, due to the serious domestic epidemic situation, late resumption of production and delayed delivery, the export quantity decreased slightly by 2.3%, and the export value decreased significantly year-on-year 28.81%; in March, the domestic epidemic situation was gradually controlled, and the overseas epidemic situation entered the outbreak period. China’s delayed delivery of raw materials in February was successively shipped. The export of raw materials quickly recovered and achieved rapid growth. The year-on-year increase in export value and quantity reached 13.05% and 31.23%; in April, the export of APIs continued to grow at a high speed, with an increase of 24.85% and 31.24% year-on-year in the export value and quantity, respectively.

As the global epidemic continues to spread and become the norm, it is expected that the export of APIs will continue to grow positively from May to June, but due to the temporary demand growth of the APIs has been gradually met, the growth rate of API exports from May to June will be somewhat Slow down.

The average export price will continue to climb

Contrary to the substantial increase in export volume, the average export price of raw material medicines in my country has fallen into a trough, which is mainly affected by the price fluctuation cycle. Except for January, the average export price in February-February experienced a significant year-on-year decline, with the declines reaching 27%, 14%, and 5%, respectively.

It is understood that my country's API export companies often sign orders with customers for the first quarter of the next year or even the first half of the year, and most of them are CIF orders with lower prices to lock in certain future market share and profits. Since the outbreak of the epidemic this year, the cost of chemical raw materials, disinfection and epidemic prevention, and domestic and international logistics have risen sharply. The first quarter orders originally signed by the company have suffered losses, but the company still chooses to continue to implement to protect customers.

With the completion of the original orders in batches and the quotation of new orders soaring, corporate losses can be compensated to a certain extent. From the data of March and April, the average export price of APIs rose by 20% and 11% respectively, which has basically returned to the normal level before the epidemic. At present, the global epidemic situation has still not been effectively controlled. With the continuous growth of my country's export of raw materials, it is expected that the average export price will continue to climb from May to June.

Relevant category exports increased significantly

From January to April, my country's exports of various raw materials and medicines have achieved different degrees of growth, especially the increase in the export volume of anti-epidemic related products.

Exports of APIs such as ritonavir, nevirapine and lamivudine increased by 14% year-on-year; the export of chloroquine phosphate and hydroxychloroquine sulfate APIs showed an explosive growth from March to April, but with the new crown of hydroxychloroquine treatment overseas During the phase III clinical trial of pneumonia, there are many reports that chloroquine and hydroxychloroquine have a limited effect on the treatment of new crowns, and have serious toxic and side effects on the heart. They are increasingly cautious in the treatment of new crown pneumonia internationally. Sweden, Brazil and other countries have already stopped On June 15th, the US FDA even revoked the emergency use authorization of chloroquine phosphate and hydroxychloroquine sulfate for the treatment of new coronary pneumonia. The international demand for the above-mentioned APIs has cooled significantly, and the number of inquiries received by domestic related companies since May has been greatly reduced.

Among the antibiotic raw materials, the export volume of macrolides and sulfonamides increased by more than 45% year-on-year, while the export volume of tetracyclines, chloramphenicol and aminoglycosides increased by about 20% year-on-year. Penicillins and cephalosporins Export volume also achieved a small increase.

The export of antipyretic and analgesic drugs increased by 12% year-on-year, of which exports in March and April increased by more than 22% year-on-year, and the export of paracetamol with higher safety increased by 29% year-on-year. The export volume of the diseased ibuprofen fell by 13% year-on-year.

The export volume of vitamin raw materials increased by 19% year-on-year. During March and April, the year-on-year growth rate of exports reached 33% and 40%, of which the most significant increase in the export volume of vitamin B12, vitamin C and vitamin B6 increased by 120% year-on-year, 31% and 27%.

In addition, the export volume of hormone raw materials increased by 25% year-on-year. Among them, the export volume of estrogen and progesterone and cortisone increased by 28% and 34% year-on-year respectively. The export volume of amino acid APIs increased by 31% year-on-year. Among them, lysine, glutamic acid, DL-hydroxymethionine, etc. have achieved different degrees of growth.

China becomes the "big rear" of global API supply

 During the epidemic, my country's APIs were not only exported in large quantities to developed countries and regions such as Europe, America, Japan and South Korea, but also increased supply to countries and regions along the “Belt and Road” and fully supported its anti-epidemic actions.

India, which has not been unblocked since the national blockade began on March 25, is still the country's largest export destination of raw materials. While restricting the export of domestic raw materials during the epidemic, it also increased its procurement of raw materials in China . From January to April, my country's exports of raw materials to India amounted to US$1.831 billion, a year-on-year increase of 3.87%, and exports increased by 10% year-on-year. In addition to individual categories such as penicillins and lincomycin, China's exports to various raw materials and medicines in India have achieved growth. Aminoglycosides, sulfonamides, and chloramphenicol have achieved rapid growth of more than 100%. Amino acids The year-on-year growth rate of steroids, hormones and macrolides exceeded 30%.

From the monthly data, China’s exports of raw materials to India decreased by 6% year-on-year in February, mainly due to delays in exports due to domestic epidemics; orders were released in March, and the export volume increased by 34% year-on-year; The impact of the policy has greatly reduced the capacity of freight logistics. India’s domestic production has been suspended. China’s export volume has dropped by 21% year-on-year. From May to June, India’s “closing country” policy continued, but it has been partially reinstated. Exports have recovered and it is expected that there may still be a slight negative growth.

While the United States declared that it would take measures to reduce its dependence on Chinese APIs, it continued to increase its efforts to import APIs from China. The epidemic continued to spread and India’s export restrictions on APIs forced it to have “contradictions”. situation. From January to April, my country's exports of raw materials to the United States were US$1.507 billion, a year-on-year increase of 4.37%, and the export volume increased by as much as 29%. From January to April, my country's API exports to the United States have maintained a positive growth. In March and April when the US epidemic was on the way, my country's API exports to the US increased by 38% and 48% year-on-year. It can be said that China has provided a lot of help in its fight against the epidemic, including the provision of a large number of much-needed APIs, such as chloroquine and hydroxychloroquine, vitamins, hormones, and amino acids.

From January to April, China's exports of APIs to the EU, Japan, and South Korea increased by 13%, 7%, and 21% year-on-year, respectively, and those to ASEAN, Latin America, and Africa increased by 19%, 15%, and 24% respectively . China has become a veritable "big rear" in the global supply of anti-epidemic raw materials.

More companies set foot in international business

From January to April, a total of 8867 enterprises in my country engaged in the export of APIs, an increase of 390 over the same period of the previous year. Many enterprises in the country saw the business opportunities for the export of APIs when the production and export of anti-epidemic materials such as inlet masks, protective clothing, test kits, etc. were switched over in large numbers. Some are traditional trading companies trying to get involved in the export of APIs, some are exclusively for domestic API manufacturers to start accepting international orders, and a few are illegal chemical factories that illegally produce APIs and export them in the name of intermediates or chemicals. "Make quick money, the latter is likely to seriously disrupt the order of China's API export market.

The cumulative export volume of my country's top ten companies in the export of APIs was 1.103 billion US dollars, accounting for 9.32%. The export performance of Xinhecheng, Puluo Pharmaceutical, Xinhua Pharmaceutical, Zhejiang Pharmaceutical, Yifan Pharmaceutical, Tianyu Pharmaceutical and other companies have increased significantly.