Issue 4, 2016 - Quick Facts

The global active pharmaceutical ingredient market has a promising outlook

According to the European Fine Chemicals Group (EFCG), the global active pharmaceutical ingredient (API) industry is picking up with a positive
outlook for the coming years.
Its main drivers include increased demand for high value-added products, the return of Western European and American companies that have shifted their operations to low-cost regions, and improved
product quality and reliability in European companies.
According to the EFCG, the global API market was worth $84 billion in 2014, and North America is the world's largest API market, with a market value of $12.
5 billion in 2014, accounting for 29% of the global market; The European market reached $11.
5 billion, followed by Latin America with $6.
8 billion, or 16 percent
.
Global prescription drug sales are expected to grow rapidly before 2020, and the average annual compound growth rate will reach 4.
8%
during 2014~2020.

Barclays: In 2016, global oil and gas company budgets will bottom out twice

According to Barclays' annual oil and gas exploration and production expenditure outlook, a report conducted by Barclays after surveying 225 companies, global upstream oil and gas companies will cut spending by 15% in 2016 and 23%
in 2015.
This means that for the second time in Barclays' 31-year history of investigation, there has been a continuous reduction in spending, the first time occurred in
1986~1987.
Barclays believes that the continued decline in oil prices means that the spending budgets of oil and gas companies will fall further, because the budgets of these companies are generally based on the average price of Brent crude oil of $50/barrel and the average price of WTI crude oil of $45/barrel
.
The current oil price is about $30 per barrel
.
Barclays said that if oil prices can be maintained at $40 a barrel, global upstream oil and gas companies will cut spending by nearly 20%
this year.

U.
S.
ethanol exports will continue to grow

Michael Dwyer, chief economist at the U.
S.
Grains Council (USGC), said U.
S.
ethanol exports will continue to grow
for a long time to come.
Based on USDA forecasts for U.
S.
corn prices through 2024 and OECD forecasts for global sugar prices, U.
S.
corn prices are expected to stabilize below $4/bushel, while sugar prices will remain above
corn prices.
In addition, the United States is wrestling market share
from Brazilian ethanol producers.
The Brazilian ethanol industry is facing economic recession and high interest rates, and it is difficult to compete with
the United States due to multiple factors.
On the contrary, the US ethanol industry is developing well
.