Prices of pharmaceutical raw materials haven’t been stale since last year. Penicillin industrial salt and vitamin products have set off the tide in prices. Recently, amoxicillin which is great influenced by penicillin industrial salt and has the most competitive market, begins to take part in the war.

Due to the impact of environmental pressures, the recent number of penicillin raw material drug production is discontinued or substantially cut the state, the penicillin industrial salt market prices to rise significantly. Pharmaceutical raw materials prices surge has further spread to the commercial channels -. Downstream of penicillin industrial salt preparation products amoxicillin in China within the general price increases. Amoxicillin three major manufacturers of pharmaceutical products supply the responsible person, the raw material amoxicillin drug prices rose by 330 RMB / kg to 350 RMB / kg, has now risen to 380 RMB / kg. Along with the prices of bulk drugs, their finished products amoxicillin prices are rising. The amoxicillin finished goods prices, responded to the upper reaches of penicillin industrial salt market, pulling its price soared.

Prices are generally rising trend are many reasons, the main influencing factors are: First, with the conversion of the season, the use of antibiotics in the crowd was explosive growth, and thus provide a good market for the resveratrol drug; the cost of bulk drugs significantly improve the impact of rising oil prices three times, especially for the intermediate 6-APA production of amoxicillin hydroxyphenylglycine shortage of (Deng salt), climbing higher and higher prices, stimulate the synthesis of drugs prices; is foreign some penicillin factory discontinued and Indian companies to expand production and sales of amoxicillin, thereby exacerbating the demand for penicillin industrial salt; about 12 billion each year due to the current capacity of production before the three companies occupy 60 % market share, the higher the degree of market concentration, which led to several major manufacturers of each other on price, supply and demand is relatively unstable.

The above reasons, on the one hand, the driving force behind amoxicillin raw material prices itself; the other hand, the downstream finished products market is a temporary shortfall, further stimulating demand for raw materials. Experts estimate that due to the arrival of the off-season, the problem of the shortage amoxicillin materials will gradually reduce.

Looking at the current raw material market, because the price back up, some power manufacturers have more expansion, and even some small manufacturers have rallied chia seed production, amoxicillin competition exacerbates to some extent. In this respect, the relationship between supply and demand of the product will be changed. Under market economy conditions, price fluctuations in accordance with the regulations of value are the normal phenomenon. If the price deviates from the value curve, it will naturally return to a certain extent. Therefore, before the dawn of the off-season, the measures of selling stock, less purchase, digesting the product as soon as possible should be took.Source:http://www.cospcn.com