Soaring Tri Calcium Phosphate in India, Provide No Relief to Indian Pharma Industry
- 15-Dec-2021 4:57 PM
- Journalist: Jai Sen
Indian Pharma industry has been facing difficulties since a long time due to spiralling raw material cost. Production halts across China and high freight cost in global market have made it difficult for domestic manufacturers to procure cargoes on time and at a reasonable cost since past several months. One of the important raw material Tri Calcium Phosphate remained at a very high note during October-November timeframe, leaving downstream users anxious about profitability. Furthermore, as per ChemAnalyst data, Tri Calcium Phosphate prices shot up by around 22% within 6 weeks in India, which was highly concerning for downstream users. These circumstances arrived due to lower imports China that too at a very high price quotation.
Chinese market recently witnessed several ups and downs due to highly complicated market dynamics, where raw material prices kept on fluctuating with a considerably high margin. Manufacturers in China observed strict regulations imposed by Chinese government in compliance to the Dual Energy policy. Consecutively, Tri Calcium Phosphate manufacturers were heard battling with raw material scarcity and rising production cost.
Meanwhile, demand fundamentals remained stable to firm in both Chinese as well as in Indian market, supporting this sharp uptrend for the product. Scarcity of raw material yellow phosphorus remained a major concern for several downstream derivatives, which has induced buoyancy in the overall value chain during past few months. Some Indian drug manufacturing associations have been urging government to pass on price burden to consumers, as their margin have been squeezed by considerably high value, making it difficult for them to sustain their profitability.
As per ChemAnalyst analysis, Tri Calcium Phosphate prices are expected to keep on tracing this trend for further period in India, as traders are still not receiving ample supplies to satisfy the current need of the country. However, Chinese market might show some improvement after January, as these restrictions might ease during early Q1 2022.