2019/2/14 – CRI Report

Research Report on China’s Lithium Battery Cathode Material Industry, 2019-2023

admin — Thu, 14 Feb 2019 06:46:12 +0000

Description
In 2017, the sales volume of new energy vehicles totaled 777,000 units, increasing by 53.3% YOY and accounting for 2.7% of the total vehicle sales in China. As the new energy vehicle market expands rapidly, lithium-ion batteries, especially lithium-ion power batteries, has also seen exponential growth in China.
Critical to the performance of lithium-ion batteries, cathode materials are the major sources of the lithium ion in commercial lithium-ion batteries. Their performance and prices have a great impact on lithium-ion batteries.
By chemical composition, lithium battery cathode materials are classified into lithium cobalt oxide (LCO), lithium iron phosphate (LFP), lithium manganese oxide (LMO) and ternary materials including lithium nickel cobalt manganese oxide (NCM) and lithium nickel cobalt aluminum oxide (NCA).
According to CRI’s analysis, cathode materials have different applications in China. The direct consumers of lithium battery cathode materials are lithium battery manufacturers. With distinctive advantages and disadvantages, LCO, LMO, LFP and ternary materials are applied in different downstream industries. LMO and LCO are mainly used in the batteries for consumer electronics while ternary materials and LFP are mainly used in the power batteries for new energy vehicles including electric vehicles.
CRI’s market survey shows that LCO, LFP and ternary materials are the mainstream of the cathode materials in China. LMO has good cycle performance and rate discharge performance at normal temperature but it has poor high-temperature performance. Therefore, LMO is mostly used in mobile phones, tablet computers and other digital products but seldom used in power batteries. Because of high technical barriers, the production capacity of NCA concentrates in Japan and South Korea. NCA sees little production and application in China though it is known for the electric vehicles of Tesla. The mainstream ternary material in China is NCM.
According to CRI’s analysis, China’s lithium battery cathode material market is highly concentrated. In 2017, the top 10 manufacturers of lithium battery cathode materials contributed more than 60% production volume in total. Hunan Shanshan Energy Technology Co., Ltd., GEM Co., Ltd., BTR New Energy Materials Inc. and Xiamen Tungsten Co., Ltd. have great advantages on the market.
According to CRI’s market survey, with the development of the cathode material market, the demand for raw materials such as lithium carbonate, nickel, cobalt and manganese has been growing. As a result, the prices of these raw materials showed an upward trend from 2013 to 2018. For example, the prices of cobalt rose from about 204,000 CNY/ton in 2013 to 535,800 CNY/ton in 2018. However, the prices of cathode materials showed different trends. From 2013 to 2018, the prices of NCM, LCO and LMO all increased except that the prices of LFP decreased.
If the sales volume of new energy vehicles in China exceeds 2 million units in 2020 and 5 million units in 2025 as planned by the Chinese government, China’s cathode material market will maintain rapid growth from 2019 to 2025.

Topics Covered:
– Development environment of China’s lithium battery cathode material industry
– Supply of and demand for lithium battery cathode materials in China
– Competition in China’s lithium battery cathode material industry
– Development of LFP, LCO, LMO, NCM and NCA in China
– Major factors influencing development of China’s lithium battery cathode material industry
– Prospect of China’s lithium battery cathode material industry from 2019 to 2023

The post Research Report on China’s Lithium Battery Cathode Material Industry, 2019-2023 first appeared on CRI Report.

Research Report on Dairy Product Import in China, 2019-2023

admin — Thu, 14 Feb 2019 06:46:12 +0000

Description
With the development of China’s economy and the arise in Chinese people’s living standards, the per capita consumption of dairy products in China keeps rising. Despite the increasing demand for dairy products, the domestic production of dairy products sees a rather anemic growth. In 2017, the apparent consumption of dairy products in China reached about 31.79 million tons, representing a CAGR of about 2.7% from 2013 to 2017, according to CRI. However, the production volume of dairy products in China grew at a CAGR of only 2.1% during the same period. The main reasons for the sluggish growth include: (1) The costs of domestic dairy production in China are higher than the global average as affected by the costs of feed, labor and land, and the low profitability inhibits the production growth; and (2) Chinese people lack confidence in domestic dairy products as safety incidents occurred frequently in China’s dairy product industry in the recent decade. The above factors drive the growth of dairy product imports in China.
According to China Customs, in 2018, the import volume of dairy products in China reached 2.74 million tons, up by 7.80% YOY; the import value reached USD 10.65 billion, up by 14.80% YOY, CRI concludes. The dairy products imported to China include milk powder, liquid milk, cheese, etc., with milk powder taking the major share. In 2018, milk powder imports contributed nearly 70% to the import value of dairy products in China. The milk powder imported to China includes infant formula milk powder, raw milk powder, etc. China needs to import a large quantity of infant formula milk powder because its consumers lack confidence in the safety of domestic counterparts. And raw milk powder is imported because of low prices and high quality.
The growing imports of dairy products have had some impacts on China’s domestic dairy producers, for example, the decline in sales revenue and profit margins. Therefore, the Chinese government introduced restrictive policies on dairy product imports. For example, to restrict the import of infant formula milk powder, on Jan. 1, 2018, the China Food and Drug Administration put into force the Measures for Administration of Registration of Formulas of Infant Formula Milk Powder which stipulates that infant formula milk powder that has not been registered in China is not allowed to be sold in China, and the Certificate of Registration of Formulas of Infant Formula Milk Powder must be obtained according to the law for imported infant formula milk powder to be marketed in China. On Mar. 14, 2018, the Announcement of the State Certification and Accreditation Administration on Renewing the Registration of Overseas Manufacturers of Imported Infant Formula Milk Powder specified that the registration of overseas producers of imported infant formula milk powder would be valid for four years and should be renewed upon expiration. These policies are expected to drive away more than 80% of the over 2,000 imported brands (products) of infant formula milk powder on the Chinese market.
CRI estimates that Chinese people will have a growing demand for dairy products as their income increases. However, domestic dairy production has limited growth potential as restricted by several unfavorable factors, and faces rising costs. Therefore, the annual import volume and import value of dairy products in China will continue to grow. Some Chinese dairy producers are acquiring overseas dairy enterprises to make profits from exporting dairy products to China. It is evident that the Chinese market presents huge opportunities to global dairy producers.

Topics Covered:
– Major factors influencing dairy product import in China
– Dairy product import in China
– Major sources of China’s dairy product imports
– Comparison of prices of domestic and imported dairy products
– Prospect of dairy product import in China from 2019 to 2023

The post Research Report on Dairy Product Import in China, 2019-2023 first appeared on CRI Report.

Investigation Report on China’s Simvastatin Market, 2019-2023

admin — Thu, 14 Feb 2019 06:46:11 +0000

Description
The blood lipid levels of Chinese people are rising as China’s economy develops and a high-calorie and high-fat diet becomes increasingly prevalent. In 2018, the overall incidence of dyslipidemia in Chinese adults was up to about 40%. As dyslipidemia is a major cause of coronary heart disease, strokes and other atherosclerotic lesions, the treatment of hyperlipidemia can reduce the incidence of these diseases.
Developed by U.S. company MSD, Simvastatin is a semi-synthetic HMG-CoA reductase inhibitor with Lovastatin as the raw material. It was first launched in 1988, and approved by the FDA in Dec. 1991. The trade name of MSD’s Simvastatin is Zocor. Simvastatin can prevent the development of atherosclerosis and prevent the relapse of heart diseases, and reduce the risks of nonfatal myocardial infarction and myocardial revascularization.
In 1995, MSD introduced Simvastatin to China. Simvastatin is the first widely used statin in China and the only statin that has been included in China’s essential medicine list and needs to complete the consistency evaluation by 2018. And the users of Simvastatin can enjoy some preferential policies. Numerous advertisements and early launch have made Zocor well-known in community-level hospitals. In an agreement with the Chinese government, MSD promised to lower the prices of Simvastatin for a bigger market share.
CRI’s market research shows that the sales value of Simvastatin in sample hospitals in China was about CNY142 million in 2017, and is declining in the competition with other similar drugs. By sales value, China’s Simvastatin market is dominated by Hangzhou MSD Pharmaceutical Co., Ltd., MSD, Guangzhou Nanxin Pharmaceutical Co., Ltd., Cinmed Pharmaceuticals, and Yangtze River Pharmaceutical Group Sichuan Hairong Pharmaceutical Co., Ltd. In 2017, the market share by sales value of Hangzhou MSD Pharmaceutical Co., Ltd. was about 63%, which means that branded Simvastatin still has great advantages on the Chinese market.
According to CRI’s estimate, Simvastatin will still have certain growth potential in China from 2019 to 2023 as the incidences of cardiovascular diseases keep increasing with the rising urbanization level, aging population and changing lifestyle.

Topics Covered:
– Development environment of statins in China
– Supply of and demand for Simvastatin in China
– Major Simvastatin manufacturers in China
– Prices of Simvastatin in China
– Prospect of China’s Simvastatin market from 2019 to 2023

The post Investigation Report on China’s Simvastatin Market, 2019-2023 first appeared on CRI Report.