After spring festival, the price of 7-ACA had dropped to 750 Yuan/kg from 950-900 Yuan/kg in Chinese market. When the prices of Penicillin G and Amoxicillin, having close relationship with 7-ACA price, have been on the track of increasing, why did 7-ACA price drop?
Some insiders think it is because the production base of The United Laboratories Ltd. in Neimenggu and the production base of Joincare Group in Jiaozuo city will be put into production formally in this year. For the base in Neimenggu, the production capacities of Penicillin G and 6－APA are 10,000 tons and 5,000 tons respectively. For the base in Jiaozuo, the production capacity of 7-ACA was 1,000 tons. Moreover the production line of 7-ACA or Penicillin G can be transfered to produce the other one. So the production capacity of the base in Neimenggu cann't be neglected.
So the price drop maybe is a strategy of current manufacturers. They want to give a pressure to the newcomers. "In the short term, the price drop of 7-ACA maybe will affet the increasing of Penicillin G price, " a insider said. "In the long term, the whole market situtaion of APIs maybe will be affected."