With the shift in industry logic, the production capacity of specialty APIs is gradually transferring to the Asia-Pacific region, bringing strong prosperity to relevant domestic industries.
The primary driving factor lies in the continuous rise of environmental and labor costs in developed regions such as Europe and the United States, tipping the industrial balance toward the Asia-Pacific, with China and India becoming the largest recipients of relocated production capacity.
According to relevant reports, the current domestic market size of specialty APIs is estimated at approximately 5.5 billion US dollars.
The global capacity relocation of bulk APIs has been largely completed, while the transfer of specialty API capacity is accelerating. Coupled with the short-term impact of the pandemic, prices of some product varieties are expected to rise.
The API industry relocated from developed economies will inevitably exert a certain impact on China's ecological environment. Meanwhile, China's relatively low-cost labor is both a reality the country faces and a favorable condition for industrial development.
If China can seize this opportunity to achieve industrial upgrading, it will live up to market expectations.
