Agricultural sodium chloride investment expansion need to be cautious

The shortage of medicinal sodium chloride in the market has caused 15% of China's medium and low-end large-scale infusion manufacturers to “wait for rice”. In the great sales situation, production companies have started production and expansion. However, the risks involved cannot be overlooked.

Medicinal sodium chloride is a bulk drug substance. Since the first quarter of this year, the nation’s five API manufacturers have stepped up their production at full capacity, still unable to meet market demand. The increase in domestic demand is mainly due to the good of medical reform policies. According to the data provided by the State Council's Medical Reform Office, the number of people participating in medical insurance nationwide in 2011 was 1.28 billion, which was 25% higher than in 2010. This year, the country will achieve full coverage of medical insurance. In particular, the rural areas have implemented the new rural cooperative policy, which has provided basic guarantees for the farmers to see the sick. This prompted China's pharmaceutical sodium chloride raw material demand continues to increase. According to statistics, in 2010, the national demand for medicinal sodium chloride raw materials was 60,000 tons, and in 2011 it increased to 86,000 tons. The first quarter of this year was 58,000 tons, reaching the annual demand for 2010.

The expansion of the daily chemical market has also increased the demand for medicinal sodium chloride. China is a big consumer of daily cosmetics. While domestic cosmetics manufacturers increase production and expand production, world-famous companies such as Procter & Gamble, Amway, and Boroo have stepped up efforts to expand investment in China, producing toothpaste, shampoo, and shower gel. For daily chemical products, medicinal sodium chloride is used to varying degrees, so that the demand for medicinal sodium chloride is relatively increased. The annual dosage is more than 30,000 tons.

In addition to the increasing demand in the domestic market, foreign pharmaceutical companies are also increasing imports of medicinal sodium chloride through various channels. They have turned their attention to cheap Chinese medicinal sodium chloride. According to the statistics of the General Administration of Customs, the national export of sodium chloride for medicinal use was 48,000 tons in 2011, and the export volume in the first quarter of this year was 17,000 tons, which was also the main factor causing the shortage of medicinal sodium chloride.

Seeing the market gap, pharmaceutical sodium chloride manufacturers do not want to lose the golden opportunity for development, and set off a wave of production and expansion. Jiangsu Qinfen Pharmaceutical Co., Ltd. has an annual output of 50,000 tons of medicinal sodium chloride expansion project has been basically completed, is currently installing equipment, will be put into operation in the second half of this year; Shandong Feicheng Pharmaceutical Co., Ltd. declared annual production of 50,000 tons of medicinal In the expansion project of sodium chloride, Shandong Province Food and Drug Administration approved 40,000 tons, and is now under intense construction; Hebei Huachen Pharmaceutical Co., Ltd. has already completed the expansion of the 15,000-ton medicinal sodium chloride project and is currently commissioning the equipment. It can be produced normally soon.

If you do not have the technical and market advantages, blind expansion is also risky. China is a major transfusion country. The per capita infusion volume per year is 6 times of the world's per capita infusion volume. However, such a large infusion volume has an unreasonable component and has now been taken seriously by relevant departments. With the scientific rationality of medication, the demand for medicinal sodium chloride may no longer show rapid growth.

In addition, foreign companies are optimistic about China's products, mainly low-priced products. In the low-price competition, how companies can guarantee their own cost advantages is also worth considering.

The expansion of the medicinal sodium chloride project should be considered in terms of cost, technology, market, etc., focusing on product quality and avoiding construction risks.