December 22, 2003

 

 

China's Major Vitamin C Producers Continue To Expand Production Despite Declining Prices

 

An eFeedLink Special Report

  

Below is an abstract of the report: China's Major Vitamin C Producers Continue To Expand Production Despite Declining Prices

  

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With a healthy growth in vitamin C exports in the first half of 2003, prospects for China's vitamin C production industry seemed bright and rosy. However, by September 2003, the forecast was considerably gloomy as prices of vitamin C tumbled.

 

Attracted by rising profitability in vitamin C production, China saw a big increase in the number of vitamin C manufacturers from 1993 to 1995. More than 10 companies produced vitamin C during this period. Huabei Pharmaceuticals Group led the industry expansion, increasing its annual vitamin C production capacity from 3,000 tons to 15,000 tons in 1993.

 

The result was excess production of vitamin C in China. Smaller companies collapsed and four vitamin C production giants emerged, namely: Dongbei Pharmaceuticals Group, Weisheng Pharmaceuticals (subsidiary of Shiyao Group), Weierkang Pharmacy Co., Ltd (subsidiary of Huabei Pharmaceuticals Group) and Jiangshan Pharmaceuticals in Jiangsu province

 

Over the last five years, prices of vitamin C have been hovering at low levels, with the global vitamin C market being dominated by the "Six Vitamin C Giants", i.e. Roche, BASF and the four aforementioned Chinese vitamin C producers. 

 

Global demand for vitamin C has always remained at around 80,000 tons, with average growth rate at around 5% per annum. The 8-year battle among the six global market giants finally culminated in the departure of Roche from the global vitamin C market during the latter part of 2002.

 

More contents in this 9-page report include:

• Falling Prices of Vitamin C in China
  
  
• Vitamin C Supply Outstrips Demand
  
  
• Another Round of Vitamin C Price War Seen in 2004
  
  
• Who Will Be Eliminated in the Vitamin C Price War?
  
  
• Trapped In The Vitamin C Price War Maze
  
  
• Mergers & Restructuring of Vitamin C Producers
  
  
• Anti-Dumping Measures Against Chinese Vitamin C Producers Imminent
  
  
• Chinese Vitamin C Manufacturers Focusing on Domestic or Global Market