The G20 Summit is to be held on 4 Sept.,
2016 in Hangzhou City, Zhejiang Province. To make the air quality meet
standards during the conference, government will impose stricter environmental
regulations on chemical enterprises (especially the small- and mid-sized ones)
in Hangzhou and the surrounding areas.
Source: Bing
So far, environmental regulations have
been carried out based on 3 zones: summit venues with a 50 km, 100 km and 300
km radius respectively, for "crucial", "strict" and
"general" control.
This has posed great negative effects on vitamin, viscose and dyeing
industries. Small-scale producers and intermediate suppliers have started to
suspend production this month, and leading producers will do so by Aug, lasting
1-2 months. This is likely to tighten the supply and push up corresponding
market prices in the short run.
Early in May, the Zhejiang government issued the Work Plan for Environmental
Quality Assurance during the 2016 G20 Summit:
-
Rectification (before 23 Aug.): to further
strengthen the prevention and control of environmental pollution and make well
preparations for the G20 Summit
-
Quality assurance (24 Aug.-6 Sept.):
protective measures to be fully taken and the period specified for production
suspension is from 26 Aug. to 6 Sept.
Given dispersibility of air pollution, besides Zhejiang Province, enterprises
in the rest of Yangtze River Delta region (covering Zhejiang, Jiangsu, Anhui,
Jiangxi provinces and Shanghai) and the surrounding are also required to
suspend or cut down production.
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Shanghai: 225 producers to suspend production before the summit
It is reported that the 255 enterprises in printing, chemical, building
material and pharmaceutical industries, located around 200 kilometres away from
Hangzhou, are asked to suspend production between 26 Aug. and 6 Sept., without
any governmental subsidies. Jinshan and Fengxian districts will be regarded as
key controlling areas.
Shandong Province: 9 cities to suspend or cut down production
So far, involved enterprises in Ji'nan, Qiangdao, Zibo, Weifang, Ji'ning,
Rizhao, Laiwu, Linyi and Liaocheng cities have been listed and put on file in
local environmental protection departments.
Jiangxi Province: to suspend or cut down production for 20 days
According to the Jiangxi Province's Work Scheme for Regional Collaboration on
Air Quality Assurance during the 2016 G20 Summit, plants in Nanchang and Jingde
cities should suspend or cut down production from 23 Aug. to 7 Sept.
Selected vitamin producers near
Hangzhou City
Note: Yifan Xinfu stands for Yifan
Xinfu Pharmaceutical Co., Ltd.;
Zhejiang
NHU stands for Zhejiang NHU Co., Ltd.;
Zhejiang
Medicine stands for Zhejiang Medicine Co., Ltd.;
Garden
Biochemical stands for Zhejiang Garden Biochemical High-tech Stock Co., Ltd.;
Zhejiang
Tianxin stands for Zhejiang Tianxin Pharmaceutical Co., Ltd.
Source: CCM
During the 2016 G20 Summit, a number of
vitamin producers surrounding the venues are required to suspend production for
varied periods. For instance,
-
About 13-15 weeks: Zhejiang NHU Co., Ltd.
(a domestic leading vitamin producer)'s vitamin A production to be halted from
July to the end of the summit
-
About 4 weeks: Zhejiang Medicine Co., Ltd.
-
At least 2 weeks: Yifan Xinfu
Pharmaceutical Co., Ltd., Zhejiang Tianxin Pharmaceutical Co., Ltd. and
Zhejiang Garden Biochemical High-tech Stock Co., Ltd.
"At present, heavy environmental pressure has led to the short supply of
active pharmaceutical ingredients (APIs). Meanwhile, the on-going supply-side
reform and low market price has helped knock out more small-sized enterprises.
As a result, supply of vitamins gets tighter," commented an industry
insider.
In the short term, vitamin API producers located around Hangzhou will have to
cut down production during the 2016 G20 Summit, which may exacerbate the short
supply and further, push up market prices of vitamins. Specifically, prices of
vitamin B5 (calcium pantothenate), B6, B1 and A are very likely to continue
rising, and vitamin D3 and B7 (biotin) also have potential to go up.
This article comes from Vitamins China E-News 1607, CCM
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Tag: vitamin