Excessive capacity export situation is worrying the new threshold of C industry or the introduction in July

Business News Agency July 12th Due to low market entry thresholds and serious overcapacity, China's dominant exporter, vitamin C (hereinafter referred to as “Vitamin C”), has been sold off in the past two years, and as a result, the industry has upgraded its management. The voice of the day is high. Recently, the Victoria C industry, which has been governing the New Deal in bitter countries, has finally seen a glimmer of hope. Yesterday, the reporter learned from related sources that the “Vitamin C Industry Access Requirements” led by the Ministry of Industry and Information Technology is expected to be introduced this month at the earliest, and is expected to play a positive role in stabilizing export prices.

"At present, the "Vitamin C industry access conditions" are being scrutinized and are expected to be introduced in the near future, the fastest being July. Of course, as the formulation of this new regulation involves the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Quality Inspection Bureau, the Food and Drug Administration, the Ministry of Agriculture, Many ministries and commissions such as the Ministry of Commerce are still in the process of further communication, and the specific time has not yet been finalized,” said the person familiar with the matter.

As we all know, a few years ago, China's production of Victoria C can definitely be regarded as a citron, and it occupies a monopoly position in the global market. According to statistics, China's Vitamin C products are mainly exported overseas. Among them, Northeast China Pharmaceuticals, North China Pharmaceuticals, Shijiazhuang Pharmaceutical Group, Jiangshan Pharmaceuticals, and Luwei Pharmaceuticals accounted for more than 90% of the global market share. The price is basically in the hands of the "five families." In particular, when the international financial crisis in 2008 caused a huge impact on China’s exports, the export of C&C was thriving, and exports doubled, leaving many companies with opportunities.

However, afterwards, the disadvantages such as low barriers to entry and chaos in management in the Victoria C industry began to show. “The lucrative profits have led many companies to actively launch the Mawei C production line in recent years.” A person in charge of a large-scale production company pointed out that the consequences of this practice are overcapacity in the entire industry, and companies have no pricing right at the time of export. .

According to the results of the Victoria C industry survey previously released by the National Development and Reform Commission and the Ministry of Industry and Information Technology, the total demand of the global dimension C in 2010 was only about 120,000 tons, but China’s total production capacity has already approached 180,000 tons. In terms of price, it is a sharp contrast. In 2008, the highest price of China's exports of C was about 140 yuan per kilogram; however, by the first quarter of 2010, the average price of VC fell to 75 yuan per kilogram, after which the price of C was once lower. Explore to 38 yuan per kilogram, almost equal to the cost. According to the latest data, in early 2011, the price quoted by domestic mainstream manufacturers, Wei C, was only 42 yuan per kilogram.

Recently, the China Chamber of Commerce for the Import and Export of Medicines and Health Products also issued an early warning that the current situation of export of Victoria C is worrying and the issue of overcapacity is getting worse. In April, the export price has fallen by more than 30% compared with the same period of last year, and some newly added companies have apparently lowered their prices. In order to compete for export market share. "For the brewing new market access policy, the entire Victoria C industry and our industry associations are all looking forward to." Deputy Secretary-General of the Chinese Chamber of Commerce for the Import and Export of Chinese Medicines and Health Products talked to Sheng Cai told reporters.

Prior to this, Zeng Youwei Company disclosed to reporters that in the forthcoming “Vitamin C Industry Access Requirements”, after several rounds of work, the National Development and Reform Commission and the Ministry of Industry and Information Technology have basically determined that there are 10 domestic VC manufacturing companies as compliant companies. In the future, other companies will not be allowed to launch this product. At the same time, compliance companies are required to report production capacity to the Ministry of Industry and Information Technology in mid-April. The Ministry of Industry and Information Technology will report the "discount" on the production capacity of these enterprises and report them to the National Development and Reform Commission. Ultimately, the NDRC will control the total capacity of domestic C-dimensional production capacity.

According to industry experts' forecasts, this year's national arrangement for production of V-C is about 100,000 tons, a reduction of nearly 50% year-on-year. "If the country's total production this year can be controlled at 100,000 tons, it will be able to achieve a balance between supply and demand, prices may also be reversed." Dong Lin Pharmaceutical Secretary Lv Linquan had openly stated. However, some people in the industry believe that even if the New Deal is introduced, it is hard to say exactly how it is implemented. In the future, if we want to resolve the chaos in the Victoria C industry, we must also extend the high-end product line to solve the problem of low-end raw material production. (Author: Xiao Wei)