SINOWAY Newsletter

June, 2024

☆ Industry news and Sinoway Comments

1. The 2024 edition of CPhI China has ended on 21.06.2024.

CPHI China is Asia’s leading pharmaceutical show. It draw 3,500+ exhibitors and 90,000+visits from the pharmaceutical industry.

As usual, we shared the booth E1D57 with our 30-year partner Fischer Chemicals AG.

It was a fruitful event for Sinoway as we sincerely received hundreds of domestic and overseas new and old friends come to visit and contact us in our boothE1D57.

2. Vitamin C and penicillin intermediates prices rise.

Some Vitamin C manufacturers still stop quoting price, the price are expected to be increased in July ~September. The reason is: Major vitamin C manufacturers are in the process of shutting down for maintenance. This year's maintenance time is longer than in previous years. During the shutdown period, goods cannot meet the demand of new orders. The sharp increase in costs such as ocean freight has also caused vitamin C prices to rebound.

The price of intermediates of penicillin has been increased, and some manufacturers have raised the prices of Penicillin G and 6-APA. The United Laboratories (Inner Mongolia) Co., Ltd. will shut down for maintenance in August, which will reduce market supply and cause a rebound in penicillin prices.

3. Unexpected Surge in Ocean Freight Prices, which is increasing in May and June 2024.

Sea freight prices have been on an upward trend since early May. Ocean freight costs from Asia to Europe and the Americas have risen significantly. Instead of going up in the range of $50-$100, the price increase for a 40HQ container reached $100-$300-$500. From the end of May to the beginning of June, the cost of shipping increased at an alarming rate. Freight costs increased by as much as $500-$1,000 for 1 40'FCL.

The price from China to Los Angeles is about $5,500-6,500/40HQ, while the price to New York is about $7,000-8,500/40HQ.  Freight costs to major European ports (Felixstowe, Hamburg, Rotterdam, Antwerp) in June have also more than doubled compare to in April.

Factors Contributing to the Increase in Sea Freight Costs:  1.Red Sea Crisis.

2. Water Shortage in the Panama Canal.   3. Impact of Customs Duties from USA and EU etc

4.Congestion at the Port of Singapore     5. Reselling Cargo Space

☆ New Products Introduction

This month, we share with you some key intermediates and API for steroid hormone products:

Here we introduce one of our strong API Methylprednisolone CAS No. 83-43-2, which used 17α-Hydroxyprogesterone as intermediate.

Advantages:

1. High quality: 99% up by HPLC, unspecified Impurities ≤0.1%; EP/USP standard

2. Documents: DMF, W/C and CEP for the API Methylprednisolone

3. Large Capacity: 15mt-25mt/year, exporting large quantities to India

4. Competitive price: Much lower price than international market, including CEP grade Methylprednisolone (obtained in Feb 2024)

Here we introduce our competitive steroid hormone intermediates as below:

Remarks: commercial production, with competitive price

Sinoway is well-prepared for receiving CDMO projects in developing and manufacturing advanced intermediates for pharmaceuticals, dye and pesticides.