Aspirin Exports Up but at Lower Prices
Year:2017 ISSUE:17
COLUMN:INORGANICS
Click:346    DateTime:Nov.30,2017
Aspirin Exports Up but at Lower Prices

Booming production & sales

Globally, sales of aspirin APIs amount to 60 kt/a. Europe and North America account for nearly two-thirds of global aspirin consumption.
Aspirin is included in the National Essential Medicine List. Aspirin (including aspirin calcium, aspirin zinc, lysine aspirin) tablets, water soluble tablets, enteric coated tablets, sustained-release tablets, effervescent tablets, capsules, suppositories and powders are included in the OTC list. As of April 27, 2017, 1 081 aspirin producers had been approved in China, 11 of which make aspirin APIs.

Declining export volume bottomed out

China’s export of aspirin APIs declined for some years, rebounding in 2016, with annual volume reaching 7 116 tons, a growth of 20.4% YoY, and the export value amounted to US$22.36 million, US$3.07 million higher than 2015’s US$19.29 million and an increase of 15.9% YoY. During January to February 2017, the export quantity was 1 144 tons, up by 247% from the 330 tons of the same period of last year, while the export value totaled US$3.51 million, a huge growth of 238% from US$1.04 million of the same period of 2016.

The proportion of export to Europe and the US reduced

About 75% of China’s aspirin exports were shipped to Europe and the US in the past years, and the exports to Asia, Africa and Latin America were small in number and percentage.
However, the proportion of China’s exported aspirin APIs going to Europe and US has started to narrow. The US was formerly China’s main export destination, as about 25% of the total exports went there, but the number now has been reduced to about 14%.
Demand for aspirin in developing countries and emerging economies is rising significantly.

Export prices are declining

China’s aspirin APIs’ export prices have been declining. During January to February 2017, the average export price fell to US$3.07/kg, a decrease of 2.5% YoY compared with US$3.15/kg in the same period of 2016.
The continuous decline in prices is mainly because supply-side reform on domestic aspirin API is proving difficult, so capacity is too high. Now more than 10 domestic pharmaceutical companies hold aspirin API production approval, but only two to three companies have realized good economies of scale. Meanwhile, China's aspirin export destinations are changing from developed countries like Europe and the United States to developing countries and the Belt and Road partner countries, and these new customers try to force prices down due to weaker payment capacity, hence dragging down the export prices. In addition, many countries have experienced intense fluctuations in currency exchange rates, putting China’s exporting companies in an awkward position.