| By Alex Shaw, Pharmaceutical Manufacturing News |
| Monday, 18 May 2009 |
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Exports of paracetamol in China increased 13 percent year-on-year to 12,557 tons during the first quarter of this year, with a value of US$44.8 million, an increase of 18.7 percent over a year ago. The average export price stood at US$3.6 per kilogram for the period, with a year-on-year growth of 5 percent. Asia, Africa and Europe remained the major export destinations of China’s paracetamol.
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The three continents imported US$23.3 million, US$6 million and US$9.9 million of paracetamol from China during the first quarter of this year, with a increase of 22.8 percent, 15.7 percent and 14.8 percent respectively. By country, China’s paracetamol exports to India totaled US$8.3 million, a growth of 44.3 percent, while the exports to Nigeria increased 41.3 percent to US$3.4 million. In addition, China exported US$ 2.9 million of paracetamol to France, up 105 percent.
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China’s paracetamol exports also saw month-on-month growth during the period, mainly due to higher customer demand as a result of Rhodia’s shutdown of Europe’s last paracetamol plant. However, a short-term rally doesn’t mean that Chinese paracetamol exporters haven’t gone through hard times.
China’s production capacity of paracetamol had reached 62,000 tons as of the end of 2008, with more than 100 exporters in the mix. Out-of-date manufacturing processes, excessive production capacity and low product quality make it difficult for Chinese paracetamol producers to expand into high-end markets outside of China.
Without access to new markets, China’s domestic paracetamol manufacturers have been forced to grab market share through a price war. In order to improve the competitiveness of paracetamol, |
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Chinese paracetamol manufacturers need to reduce output, while improving the quality, thereby facilitating their transition from competition based solely on price to one based on product quality and technologies.
In addition, they are advised to take full advantage of China’s edge in low-price raw materials while enhancing efforts in the research and development of high-end products. Last but not least, the Chinese government should raise the export tax rebate rate for paracetamol to help domestic manufacturers weather the financial crisis.
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