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Article: Bulk Penicillin Producers Face Low Prices and Profits.
- Article from:
- Chemical Market Reporter
- Article date:
- February 15, 1999
- Author:
CopyrightCOPYRIGHT 1999 Schnell Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Analysts expect a recovery as the market evolves.
STILL SUFFERING THE after-effects of multiple capacity surges in China and India during the mid-1990s, the bulk penicillin industry is struggling with low prices and oversupply. Possible restructuring is in the air, as producers attempt to remain competitive and rebuild profit margins.
Current prices of bulk penicillin are the lowest ever, according to Michael Barber of UK-based Michael Barber & Associates (MBA). He rates prices at $10 to $10.50 per billion units (BU) ($16 to $17 per kilo). The price of 6-APA is now $40 per kilo and 7-ADCA is just below 580 per kilo, according to MBA's 1999 penicillins ...