Production and Export of Salicylic Acid Grow in China

Production

China's capacity to produce salicylic acid and sodium salicylate has reached 50 000 t/a, and actual annual output now exceeds 20 000 tons, making China the largest producer in the world. Major enterprises include Shandong Xinhua Pharmaceutical Co., Ltd, Hebei Jingye Group Pharmaceutical & Chemical Co., Ltd, JQC (Huayin) Pharmaceutical Co., Ltd, Jiangsu Zhenjiang Gaopeng Pharmaceutical Co., Ltd and Nanjing Huafeng Chemical Co., Ltd, etc.
   At present, Shandong Xinhua Pharmaceutical Co., Ltd has the largest capacity in China. In 2007 the company and Shandong Longxin Chemical Group Co., Ltd jointly funded and established Shandong Xinhua Longxin Chemical Co., Ltd, which has a capacity of 12 000 t/a and specializes in the production of salicylic acid, becoming one of the largest salicylic acid production bases in the world and laying a solid foundation for Shandong Xinhua Pharmaceutical Co., Ltd to expand its aspirin-making capacity from 8 000 t/a to 10 000 t/a.
   In addition, the salicylic acid capacity of Jiangsu Zhenjiang Gaopeng Pharmaceutical Co., Ltd is 10 000 t/a, of which the sublimed salicylic acid capacity and pharmaceutical grade salicylic acid capacity are 2 500 t/a and 1 500 t/a, respectively. Hebei Jingye Group Pharmaceutical & Chemical Co., Ltd's salicylic acid capacity is 5 500 t/a. The capacity of salicylic acid in JQC (Huayin) Pharmaceutical Co., Ltd is 5 000 t/a, of which the capacity of sublimed salicylic acid, pharmaceutical grade salicylic acid and sodium salicylate is 4 000 t/a, 3 500 t/a and 2 000 t/a, respectively. Nanjing Huafeng Chemical Co., Ltd's salicylic acid capacity is 4 500 t/a.

Market

Salicylic acid and sodium salicylate produced in China are mainly sold in the domestic market. Most salicylic acid is used as raw material for producing aspirin, and a small amount of salicylic acid is sold as chemical raw material in the market. So the output of salicylic acid is closely related to the output of aspirin.
   Since 2000, some major aspirin producers in China have suspended aspirin production for a variety of reasons, so China's export volume of aspirin has declined and maintained at 7 000-8 000 tons each year. The demand for salicylic acid in aspirin production has only remained stable.
   The demand for salicylic acid and sodium salicylate in the international market has gradually increased in recent years. Chinese enterprises have seized this opportunity and strengthened their development in the international market. Both the production and export of salicylic acid and sodium salicylate in China have shown strong growth in the last 4-5 years.
   China exported 4 000 tons of salicylic acid and sodium salicylate in 2007 with a value of over US$8.0 million. In 2008 the volume exceeded 5 000 tons and value reached US$13.0 million. In 2009, the volume exceeded 6 000 tons. However, due to the impact of the global financial crisis, the export price decreased and the export value dropped slightly compared with the previous year. In 2010 the export volume once again hit a new high and reached over 9 000 tons, a growth of 150% year-on-year, and the export value exceeded US$20.0 million. China's export volume of salicylic acid and sodium salicylate was 10 579 tons in 2011, up 13% year-on-year, with an export value of US$27.66 million, up 32% year-on-year, and the export volume and export value both hit their highest levels ever.
   Major export destinations of China’s salicylic acid and sodium salicylate include Europe and North America. Due to the rapid development of emerging economies like Asia, South America and Russia in recent years, Chinese enterprises have also strengthened their development in emerging markets.
   The price of salicylic acid and sodium salicylate in the international market has also climbed. In 2011 China's export price of salicylic acid and sodium salicylate reached around US$2.6 per kg, up 17.9% year-on-year.