Analysis of China’s chemical API industry-Upstream and downstream relationship of the industry

Basic chemical industry and fine chemical industry are upstream industries of chemical APIs, most of which are petrochemical products. The API industry has a strong dependence on upstream raw materials. The price change of upstream products will directly affect the operating efficiency of API enterprises. At present, most basic chemical raw materials can meet the domestic production demand, and the abundant production capacity of basic chemical raw materials can provide sufficient raw material supply for China’s API industry. However, in recent years, due to the impact of environmental protection rectification, the prices of various raw materials have generally increased, and the production cost of China’s API industry has continued to increase, which has caused certain pressure on the operation of enterprises.

The downstream of chemical drug API industry is chemical drug preparation, that is, the API is processed into drugs directly used for human disease prevention and diagnosis through complex intermediate control processes such as chemical change and biological change, including tablets, capsules, injections, pills, ointments, etc, Some APIs can also be used as food and feed additives in the production of food and feed. The products of the chemical pharmaceutical preparation industry mainly reach various consumer end markets through pharmaceutical logistics. As the industry is related to national health, social stability and economic development, the changes in product demand and policy orientation will have a significant impact on the chemical API industry.