Current Market Trends for Chemical Distributors

Current Market Trends for Chemical Distributors

As a distributor for chemicals and pharmaceuticals we have to adapt to ever changing market environments. Changes are not limited to new regulations and growing compliance demand, but also the political situation between the countries we operate in. As our core business is moving goods between Asia, Europe and USA, we are in daily exchange with our clients and producers. We inform about new and upcoming regulations and discuss about how our business might be affected by political decisions. We can feel how the ongoing China – US Trade War and Brexit discussions have a major impact on the purchasing, production and investment strategy of our clients and manufacturers. Our approach is the following: Keeping our partners updated about current trends and movements in the market is as important as moving their goods.

CHINACOAT SHANGHAI 18 to 20 November 2019

CHINACOAT SHANGHAI 18 to 20 November 2019

CHINACOAT exhibition is dedicated to provide an international trading platform for suppliers and manufacturers of the coatings industry to connect with global trade visitors, particularly from China and Asia. The show is held annually and alternates its venue between the cities of Guangzhou and Shanghai, P. R. China. The scale of our 2018 Guangzhou edition reached its historic high, with a total of 35,540 trade visitors from 91 countries/regions, 1,291 exhibitors from 31 countries/regions and a gross exhibition area of over 78,500 square meters.

In 2019, CHINACOAT will return to Shanghai and is always a great platform where global industry meets. See you in Shanghai …

CPhI Worldwide, 5-7 November in Frankfurt

CPhI Worldwide, 5-7 November in Frankfurt

The worlds largest pharmaceutical exhibition, CPhI Worldwide, will take place 5-7 November in Frankfurt this year. More than 2.500 exhibitors and over 45.000 visitors will take the opportunity to network and source pharma solutions from all over the world. While the CPhI community hosts several events each year, the CPhI Worldwide is the main event, covering each stage of the pharmaceutical supply chain – from APIs, machinery and packaging to outsourcing and biopharmaceuticals.

Meet us there! Our teams from Germany and China will attend this event.

Golden Week in China

Golden Week in China

There are two “Golden Weeks” in China. The first one, also called Spring Festival or Chinese New Year, is celebrated in either January or February depending on the Chinese Lunar Calendar. The second Golden Week takes place in early October, where founding the People’s Republic of China is being commemorated. To be able to have a full week off, Chinese working people will be on duty on September 28th (Saturday) and October 12th (Saturday) to add some extra days to the 3 days legal holiday and make it one whole week of national holiday (October 1-7).

If you consider exploring China, try to avoid this week. Last year 726 million Chinese were travelling domestically (7 million abroad) to either visit their families or go on holiday during this week. Flights are expensive and train tickets, available 60 day prior to departure, are sold out in minutes.

RadTech Conference & Exhibition 2019

RadTech Conference & Exhibition 2019

Petrex started to supply photoinitiators to different end users last year. These products are used by UV ink and coating producers for the curing process. Since last year there is a lot of movement in the market. Prices changed enormously between times of shortages and market saturation. Another factor is the reclassification of some photoinitiators. One example is TPO, an initator used by many ink producers, was recently reclassified by EuPIA (European Printing Ink Association) as teratogenic and therefore not allowed in many ink applications in future.

Because of the big changes in the industry, producers as well as end users are working on alternatives. The Radtech conference, established in Basel in 1988, has always been an important event for the future trends in the radiation curing industry. Innovative companies and academic institutes are presenting the latest research and current developments. Petrex will attend Radtech Europe (Munich, 15-16 October) as well as Radtech Asia (Hangzhou, 17-20 October). We are looking forward to meet some of our business partners.

Expat Life in Shanghai

Expat Life in Shanghai

As the gateway to China’s economy, Shanghai is a very popular destination for expats from western countries. The city has been hosting overseas workers for over 150 years now. You can see and feel the foreign influence especially in the city center. Small cafés, bars and a variety of cuisines from all over the world, including more than 30 michelin restaurants makes Shanghai a very international place to live in.

China hosts about 600.000 expats in total and 25% of them live in Shanghai. Families often chose compounds in Hongqiao or Pudong district where most of the international schools are located. Singles prefer districts in the city center like the famous “French concession” (photo). Located at the very center, this area attracts foreigners with its old lane houses, balconies, small streets with many trees, cafes, bars and small restaurants. Although you are in the city with more than 25 million people, you can easily relax in that mix of colonial French era and the local Shanghainese vibe.

Introducing Guilin

Introducing Guilin

Guilin is a city in the Guangxi autonomous region in China. It used to be the provincial capital of Guangxi during the Ming and Qing dynasty. That is why the abbreviation of the Guangxi region is still called 桂 (Guì). By the way, those abbreviations are printed on the license plate of any registered vehicle in China. If you want to check where a car is from, that’s how to find out.

Nowadays, Guilin area is very popular for its history and beautiful landscape including the famous Longji rice terraces and the Li river, a scene which is printed on the back of ¥20 bank notes. Talking about money, now is the right time to travel to Guilin. As a result of the step-up in the US-China trade war, Beijing uses its currency to threat America. A weaker Yuan makes Chinese exports more competitive, or cheaper to buy with foreign currencies. As a result, foreigners now can travel China cheaper than in the recent years.

EU and US: Mutual recognition of inspections of API manufacturers

EU and US: Mutual recognition of inspections of API manufacturers

With the recognition by the US Food and Drug Administration (FDA) of Slovakia, the European Union and the United States have now fully implemented the mutual recognition agreement (MRA) for inspections of manufacturing sites for medicines in their respective territories. This is a milestone as it avoids duplicative work. In the past, EU national authorities had to carry out quality controls for products manufactured in and imported from the US although these controls have already been carried out by the FDA in the US. As both authorities work based on comparable procedures (GMP) it was already decided in year 1998 to sign the MRA. However, the agreement was never fully implemented until today.

China’s economic growth at lowest level since 3 decades

China’s economic growth at lowest level since 3 decades

In the second quarter this year China’s gross domestic product grew at 6.2%, which is the lowest growth since 1992 and down from 6.4% in the previous quarter according to figures released by the government earlier this week. The Chinese National Bureau of Statistics of China expects this downward pressure to continue due to the slowing global growth and trade war with the US. While China´s exports fell 1.3% during the first half of this year, imports dropped even harder with 7.3%.

The Economist Intelligence Unit of China reported that the uncertainty caused by the US-China trade war was an important factor and will be in near future. Businesses could remain skeptical that the two countries will reach a broader trade agreement and trade tensions may escalate again.

CPhI China 2019 – Shanghai

CPhI China 2019 – Shanghai

This year, CPhI China took place in Shanghai on 18.-20. June. As it is the main event in the pharmaceutical industry throughout Asia, our Shanghai and German team participated the event. The CPhI fair combines all key suppliers and customers in the chemical and pharmaceutical industry. Petrex took the chance to strengthen existing relationships with producers and clients and to create new business opportunities.

In fact, this year’s fair was very successful for Petrex as our team laid the foundation for new projects in our API business. We wish our business partners all the best and hope to see you again soon.