The focus of fine chemical development shifts to China and India


Release time:

2023-11-30

With the recovery of the global economy, the world's total annual output value of chemical products reached 3.4 trillion US dollars, an increase of 8.8 percent compared with 2009. The market size of fine chemicals is nearly 1.5 trillion US dollars, and the refinement rate has dropped to 44.1 percent. The main reason is that in recent years, the global market, especially the Middle East, has invested heavily and concentrated in the fields of large oil refining, large petrochemicals, and large chemicals.

The focus of fine chemical development shifts to China and India

The trend of industrial transfer is obvious

According to a report by the Stanford Research Institute in the United States, in 2005, the total annual output value of chemical products in the world was 2.2 trillion US dollars, of which fine chemicals and specialty chemicals were 1 trillion US dollars, and the refinement rate was 45%.

In 2010, with the recovery of the global economy, the world's total annual output value of chemical products reached 3.4 trillion US dollars, an increase of 8.8 percent over 2009. The market size of fine chemicals was nearly 1.5 trillion US dollars, and the refinement rate dropped to 44.1 percent. The main reason is that in recent years, the global market, especially in the Middle East, has invested heavily and concentrated in the fields of large oil refining, large petrochemical and large chemical industry, while the investment and development of the fine chemical industry are relatively stable, and there are no big ups and downs, resulting in a decline in the proportion of fine chemical output value.

China's fine chemical production scale in the world rankings continue to move forward. At present, the fine chemical industry developed countries and regions are China, Japan, North America and Western Europe. China ranked fourth in the world in 2005 and third in 2009. The trend of the shift of the center of gravity of the fine chemical industry is becoming more and more obvious.

In 2005, the total sales of fine chemicals in these four regions accounted for 85.7 per cent of global sales, which had fallen to 80 per cent by 2010. Among them, Europe fell from 33 per cent to 25 per cent, North America from 28.2 per cent to 27 per cent, Japan from 13.5 per cent to 12 per cent, and our share rose from 11 per cent to 16 per cent.

Processing outsourcing is a form of industrial transfer

The main fields of fine chemicals in the world include: pharmaceutical raw materials and intermediates, pesticide raw materials and intermediates, special polymers, cleaning agents, electronic chemicals, construction chemicals, surfactants, etc. Among them, the top two market shares are pharmaceutical raw materials and intermediates and pesticide raw materials and intermediates, accounting for 20.1 and 12.2 of the fine chemicals market respectively.

At present, the pharmaceutical and pesticide industries in emerging countries are growing faster than those in developed countries. IMS data show that the global pharmaceutical market has grown at a compound growth rate of 7.76 in the past five years, and the pharmaceutical industry in emerging market countries has grown at a compound growth rate of 12% ~ 13% in the past five years, while the compound growth rate in developed countries is only 4% ~ 5%. Among them, emerging market countries mainly include China, India, South Korea, Brazil, Mexico, Russia and Turkey.

The rapid development of R & D and processing outsourcing market is the main form of industrial transfer.

In recent years, from the perspective of manufacturers, in order to reduce R & D and production costs, reduce the environmental pollution caused by front-end raw material production, and speed up the process of R & D and listing of new drugs, so as to transfer the front-end raw material production of the industrial chain; from the perspective of suppliers, due to overcapacity and excessive competition, there is a demand for new opportunities and new markets, relying on the advantages of resources, talents, costs and large environmental capacity, it has undertaken some industries transferred from developed countries.

In 2007, the outsourcing ratio of global pharmaceutical R & D and processing costs was 19% and US $44 billion, while in 2010 this ratio reached 25% and US $85 billion, with an average annual growth rate of 14.1. In the next 3 to 5 years, 30 to 50 per cent of R & D and processing funds will be invested in the field of service outsourcing, with an average annual growth rate of 18.1 to 30.8 per cent, and a large part of these investments will enter China and India.

The average annual growth of domestic fine chemical output value exceeds 20%

In the process of the transfer of foreign fine chemical intermediates industry, China has gradually undertaken the industrial transfer of pharmaceutical and pesticide intermediates due to the rich resources of bulk chemical raw materials, the advantages of R & D and production of intermediates and APIs, standardized intellectual property protection, complete infrastructure, more suitable climate and other factors.

The emergence of pesticide and pharmaceutical intermediates industry stems from the international division of labor under the background of economic globalization. Due to the complex production technology of pesticides and pharmaceutical products, lengthy process links and fast update speed, no enterprise can maintain a relative cost advantage in the entire R & D, production and sales links.

Therefore, multinational companies make full use of global resources, focus on research and development and sales, and transfer the front-end raw materials in the industrial chain to countries with relative cost advantages and technology base (such as China and India), and then produce manufacturers focusing on intermediates and APIs in these countries. The low-cost advantage is a favorable basis for Chinese enterprises to undertake industrial transfer.

my country's basic chemical product market has sufficient supply, low prices, and the fine chemical market is extremely scattered. There are 17000 fine chemical companies that can produce 20,000 fine chemicals in 16 categories. Competition also reduces manufacturing costs. At the same time, there is a gap between the salary level of R & D personnel and industrial workers in China and that of developed countries, coupled with the low cost of equipment procurement, installation and construction inputs in China, the output value and export of pharmaceutical and pesticide intermediates in China are growing rapidly.

According to the National Bureau of Statistics, by the end of 2009, the output value of state-owned and above-scale non-state-owned fine chemical enterprises reached 1.8 trillion billion yuan, with an average annual growth rate of 21.64 percent from 2006 to 2009.