Business Club News March 2 The "Vitamin C Industry Access Requirements" led by the Ministry of Industry and Information Technology is expected to be released after the new "Guidance Catalogue for Industrial Structure Adjustment." The access conditions will regulate the vitamin C industry from several aspects such as yield, energy consumption, technical level, environmental protection, and safety.

In recent years, there have been serious overcapacity, redundant construction, and excessively fluctuating prices in China's VC manufacturing companies. Analysts said that China's VC industry has been restricted by the government's relevant departments as industries with excess capacity, which can be clearly stated. The introduction of vitamin C industry access conditions, the goal is to eliminate the industry, improve the degree of concentration, stable product prices, and the biggest winner is undoubtedly the top five domestic industry leading enterprises.

Last year, the industry was "bright red"

According to reports, at present, the global production capacity of C is mainly concentrated in China's "five major families": Northeast Pharmaceutical, North China Pharmaceutical, Shijiazhuang Group, Jiangshan Pharmaceutical, and the rising star Shandong Luwei Pharmaceutical. According to official data, these five companies accounted for more than 90% of the global market share, the output exceeded 100,000 tons, and the price of the global dimension C was basically controlled by the five domestic companies. However, in the past few years, the prices of wild horses have run wild and the "five families" have been unable to control the situation.

The data shows that in January 2010, V's domestic sales price was 75 yuan per kilogram, and by early September it had fallen to 37 yuan per kilogram, which was close to the cost of 30 yuan. At a high level, Victoria C has 140 yuan per kilogram. In the face of the already out-of-control situation, the "five large families" held a coordination meeting and decided to stop the single quotation from the foreign ministers and announced that they would stop the insured price from September 20, 2010.

Half of domestic capacity exceeds international demand in 2012

Guo Fanli, a researcher in the pharmaceutical industry at China Investment Advisors, pointed out that in the early stage, under the leadership of the industry leader, the price of Vitamin C has been very stable, and seeing a huge amount of profits, more and more companies have joined it. Problems such as price fluctuations and oversupply have also emerged.

From 1992 to 1993, the price of VC was once as high as 12 to 14 US dollars per kilogram, and the profit was very large. This contributed to the over-investment trend of Chinese companies and did not hesitate to carry out low-level redundant construction at the expense of the environment. Coupled with regulatory loopholes, hundreds of companies have joined the ranks of the Vitamin C production force. Blind production directly led to the production of China's Victoria C has accounted for more than half of the world's total production by the year 2000. This figure far exceeds the level of domestic demand and at the same time has caused an oversupply in the international market.

In 2009 alone, Shandong Tianli Pharmaceutical Co., Ltd., Mudanjiang Hi-Tech Biochemical Co., Ltd., Shandong Runxin Fine Chemicals Co., Ltd., and Anhui Tiger Biotech Co., Ltd. were involved in the VC project. Even the company was famous for its penicillin industrial salt. Henan Huaxing, also began VC conversion. “The annual demand of the global dimension C is 100,000 tons, and by 2012, the production capacity of domestic enterprises can reach 200,000 tons,” Guo Fanli’s data shows that there is a serious overcapacity of domestic enterprises.

The "five families" will benefit from this

With the introduction of industry-accepted conditions known to the public, the "five families" are undoubtedly the biggest winners. In January last year, the National Development and Reform Commission (NDRC) has joined hands with the Ministry of Industry and Information Technology to conduct a survey on the vitamin C industry, categorizing it as an industry surplus. At that time, the NDRC stated in a high-profile that it would study and formulate five measures to limit the production capacity of vitamin C, which also included the swift formulation of industrial access standards and strict production license review and issuance regulations. However, a clear timetable was not given at that time.

Guo Fanli pointed out that the "Vitamin C industry access conditions" is certainly stricter than before, which will eliminate a large number of companies lacking strength, in 2008, by the pharmaceutical water pollution remediation, and the financial crisis has brought a bottleneck effect, has A batch of vitamin C production companies have been eliminated and the industry concentration will be further enhanced. This will benefit the powerful “five families”.