The recent rise in raw material drug prices is staggering biotin doubled in three weeks

The business club reported on June 15th that the prices of raw materials medicines represented by vitamins have been rising in the recent period.

According to a salesperson of Shanghai Haijianuo Pharmaceutical Development Co., Ltd., a reporter from the company revealed that raw material prices have also risen due to rising raw material production costs. “In biotin, for example, the unit price was 70 yuan/kg three weeks ago and it has now reached 150 yuan/kg.”

Biotin, also known as "vitamin H," is one of the B vitamins. According to reports, Zhejiang Pharmaceutical, Xinhecheng, Zhejiang Shengda, Haijianuo, and Fuyang Kexing are the major domestic manufacturers. The demand for biotin is small, market demand is volatile, and price elasticity is also very high.

According to Mr. Zhou, a health industry raw material medicine industry analyst, the main reason for the price fluctuation of biotin is the tight electricity consumption in Zhejiang and adjustment of production plans. There are currently biotin manufacturers that have stopped quoting and taking orders.

Boya Hexun researchers expect prices to increase in the next three months. He said that in the third quarter of each year, it is the routine stoppage maintenance time for leading companies such as Zhejiang Pharmaceuticals and Xinhecheng, so it is expected that the market supply of biotin will change and biotin prices may rebound sharply.

According to reports, since the end of 2008, biotin prices have been low for a long time and the industry has suffered a general loss. In 2009-2010, the bio-supplier gross margins of related companies were all negative. Since the beginning of this year, as raw material costs have continued to rise, the exchange rate of the renminbi has risen, and the pressure on companies has increased. Therefore, the willingness to raise prices to absorb costs is strong.