The international economic continous downturn, especially the European debt crisis hit the price of drug and pharmaceutical market. As the API exporter, the phamaceutical industrial suffers a lot, not only on the export amount, but also on the export price of partial pharmaceutical raw material. The performance of different pharmaceutical material appears bigger differentiation.

The issue has always been lingering overcapacity, rising costs, coupled with new contradictions of international raw material drug regulatory tighter, increasing pressure on raw material drug companies in China. Most of the materials drug industry, science and technology content less low threshold for the pursuit of profit is often adopted of scale to expand production capacity can be compression costs, resulting in production can be excess, and ultimately enable enterprises lose the price right to speak, into a passive situation; In addition, raw materials, water, electricity the implementation of the transport as well as a new version of Good Manufacturing Practices (GMP) of directly increasing the cost pressures; At the same time, increasingly stringent international supervision, the international environment becomes more complex, and the RMB exchange rate constraints are leading Chinese chemical raw materials enterprises "go out facing increasingly complex inspection preparedness program, the requirements become more stringent, competitive advantage in price is gradual loss of these factors the business of export enterprises to huge pressure, resulting in bulk drugs export volume and price or phenomenon.

Chinese Medicines and Health Products Import and Export Chamber of Commerce recently released data show that from January to May 2012, the number of vitamin products and traditional Chinese medicine exports shrink, product prices also showed a larger decline in According to reports, May vitamin products exported 75,800 tons, down 6.34%, of which the export volume of the two main single varieties of vitamin C and vitamin E were reduced by 14.2% and 11.62%, while a variety of product prices a sharp decline. It is understood that different export target countries, the impact on differences in demand for bulk drugs. European drug prices in the first half of 2012, a larger decline in the performance of domestic exports of bulk drugs is the most obvious. January to May, China's number of bulk drugs for export to the EU decreased by 26.41%, which German exports fell 36.67 percent; U.S. and Japanese markets remained relatively stable, while the emerging market countries to maintain a certain growth. Chinese Medicines and Health Products Import and Export Chamber of Commerce data show that India is the largest country in export growth of China's API.

Current Chinese chemical raw materials still faces may unfavorable factors, inculding the pressure comes from external  market and internal enterprise. But viewing from from the favorable factors, chinese medicine industry overall still keep stable, that makes good environment for developing chemical material. In addition, economic growth and policy guarantee will promote medical consumption rapid growth, and continue to be the development of Chinese medicine industry endogenous power. For now, the international market for chemical raw materials there still rigid demand, China chemical API positions in international market in the short term will not be replaced, vitamin, penicillin, citric acid, antibiotics, acetaminophen and other large sums of apis still has a certain price competitive advantage. Moreover, characteristics by relying on technology advantage apis will continue to expand the international market share, emerging market demand is also active pharmaceutical ingredients (apis) will continue to expand, but some traditional API enterprise performance may last optimistic.It is reported, emerging markets such as China plant extract API present a price rise, statistics from
plant extract supplier show that in 2012 January to March, Chinese plant extracts export quantity for 10,238 tons, 7.5% year-on-year drop; Export value of $ 298,571,500, up 11.71%; Export price $29.16 / kg, a 20.77% increase year-on-year. But overall, Chinese domestic market is still active pharmaceutical ingredients (apis) failed to respond, especially some traditional API performance.