Industrial salt competition is expected to tend to rational price war will stop
June 04, 2018
Recently, the China Medicare Chamber of Commerce penicillin industry salt branch was established, and the major production companies from the country operating the export of penicillin industrial salt attended the inaugural meeting as a founding member. Industry insiders commented that the industrial salt price war may not be repeated.
The spontaneous “establishment of a branch” is mainly required by several major manufacturers of penicillin industrial salt. Qiao Haili, who was elected as secretary general of the penicillin industry salt branch of the Medicare Chamber of Commerce, told reporters.
The news from the Medicare Chamber of Commerce stated that penicillin industrial salt branch is an integral part of the China Chamber of Commerce for the Import and Export of Medicines and Health Products, and it is an industry organization voluntarily established by the members of the chamber of commerce that deals in the import and export business of penicillin industrial salt and its downstream bulk drug and intermediates.
It is understood that almost all penicillin industrial salt manufacturers, including stone medicine, Shandong Lukang, Henan Huaxing, North China Pharmaceuticals, Zhuhai Federation, Harbin Pharmaceutical, Sichuan Pharmaceuticals, etc., have been included in the branch. At the first meeting of the first board of directors of the penicillin industrial salt branch, Shandong Lukang was elected as the chairman unit of penicillin industrial salt branch.
Baotuan for survival?
For the starting point and purpose of the club’s establishment, Qiao Haili said: “The main task is to coordinate the work of the industry, with emphasis on the export sector, to prevent and respond to anti-dumping from abroad.”
"Of course, the club will also organize and undertake other tasks in the industrial salt industry, such as technical exchanges between enterprises and exploration of foreign markets." Qiao Haili said that as to how to deal with anti-dumping abroad, "how do we produce, we will deal with." ”
In order to cope with the ever-changing market, Industrial Salt has had three collective price limit agreements, but due to individual companies' violation of the agreement or refusal to participate, the agreement has not been implemented. The establishment of the club will change the situation in the previous penicillin industrial salt market.
It is understood that there are some uncertainties in the current industrial salt market. Affected by the "double high" factor (risk of raw materials prices and environmental protection pressure), the price trend of penicillin series raw material medicines has generally surpassed market expectations and reached US$15 to US$16/BOU, which has doubled over the beginning of the year.
In the eyes of the industry, high costs and high prices can easily lead to uncertainties in the market and can easily lead to abnormal fluctuations in the prices of bulk pharmaceuticals. Therefore, although high prices at the current stage can bring relatively rich profits to companies, there are hidden risks. The establishment of penicillin industrial salt branch can play a role in price coordination and guide enterprises in rational production and rational competition.
