Fine Chemicals – Global Market

When the early chemical industry was evolved from natural dyes and explosives into modern pharmaceutical products. However, by the end of the 19th century, the commercial production of branded pharmaceuticals flourished in Europe (especially in Germany, as many of the active pharmaceutical ingredients were produced in this country).

Fine chemicals are generally produced on a large scale, which can be measured in thousands of tonn’s per year for certain food additives and drug intermediates. Fine chemicals manufacturing is typically carried out in batch processes, with synthesis being followed by separation and purification steps.

Pharmaceuticals has always been the largest market for the fine chemicals industry. Moreover, it is likely that pharmaceutical intermediates will account for over two-thirds of the fine chemicals market. Although the number of fine chemicals companies involved in the manufacture of high potency APIs  has historically been limited, the segment has attracted more companies recently.

Production capacities across market verticals such as Agrochemicals, Polyvinyl Chloride, Polyethylene, Polypropylene, Polystyrene, Caustic Soda, Soda Ash, among others, wherever available. The reader also stands to gain a macro level understanding of the scenario prevalent in regional markets.

Regional markets briefly abstracted, and summarized include the US, Canada, Japan, Finland, France, Germany, Russia, Spain, the Netherlands, UK, Asia, China, India, South Korea, Argentina, Brazil, and Mexico among others. The report offers a compilation of all recent mergers, acquisitions and strategic corporate developments in addition to an included indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 2250 companies worldwide.

Indian API makers to take on the China challenges

India reportedly imported active pharma   Ingredient’s  and drug intermediates a rise of about 58% . China was one of the major exporters of APIs and intermediates into India. The rapid rise in imports of APIs from China in the last few years is raising a major concern among Indian API manufacturers., It is of major concern as competition has increased and market for Indian manufacturers has become unhealthy in many APIs.

China has overtaken India as the main of source of APIs due to planned and sustained support from its Government in terms of infrastructure, subsidies, cheap power, transportation, dedicated capacities in voluminous manufacturing, effluent treatment facilities, industry-friendly labour laws etc. Such sustained mega growth can also be replicated in India with whole-hearted support from our Government on all these fronts.

Rising production cost and increasing pressure on margins are forcing Indian formulations to low-cost imports from China. “Generally, business will follow the economics of demand and supply, especially supply of APIs at absurdly low prices, almost tantamount to dumping. Again intermediates also need to be imported as the cost of procuring or manufacturing within India is very high and this leads to comparatively higher costs of APIs produced in india.