Promising Future of Modified Starch in China

At present, modified starch industry in China situates in a growing stage; it's believed that there's still plenty of room for its further development, according to CCM’s September issue of Corn Products China News.

China's total output of modified starch reached about 1.24 million tonnes in 2010, realizing a 17.4% year-on-year growth. Paper industry and food industry are still the top two largest downstream markets of modified starch in China in 2010 and 2011.

In fact, modified starch industry in China is still not fully developed yet, with a promising future laying ahead. Statistics show that the per-capita consumption volume of modified starch in China was only 1 kg in 2010, while it averaged out at 1.2 kg all over the world, and that of the US reached 10 kg. Thus, the industry in China has great room for development.

Besides, the first national standard for modified food starch will be published in the future, which can promote the further fast development of modified food starch industry.

For the further development of domestic modified starch industry, producers should pay much attention to the development of  proper varieties and expansion of product mix so as to enter a new market and cater to specific demand from customers. Domestic producers should also improve R&D capability so that modified starch industry in China can develop better and faster.

The following highlights are covered in Corn Product China News 1109:

-China's corn starch industry puts on good performance in H1 2011, with some major producers' -gross profit margins seeing a slight increase over H1 2010.

-Output of modified starch in China witnessed a 17.4% increase in 2010 over 2009.

-Both China's import and export volume of corn products witnessed an uptrend in July 2011, especially the former one with a 1,035% rise over the previous month.

-Domestic price of citric acid has witnessed a downtrend since July 2011 due to sluggish demand from export.

-China's average price of lysine remains high and stable in Sept. thanks to booming market demand.

-Technical Specifications for Treatment of Monosodium Glutamate Industrial Wastewater (draft) will be issued in the near future, which can further increase the industry concentration.

-Global Bio-chem puts on great performance in H1 2011, posting a gross profit margin increased to 24% from 16% in H1 2010.

-Despite the slight year-on-year decline in gross profit margin in H1, Fufeng Group is hopefully puts on great performance this year.

-Northeast Pharmaceutical changes its pricing benchmark of raising non-public offering of stock to 3 Sept. 2011 from 22 June 2011 due to its bad performance in H1 2011.

-Global Sweeteners decides to carry out capacity expansion during 2011 and 2013, covering corn starch, HFCS, crystalline glucose and maltodextrin.

-DDGS price in China stays at a high level in Sept. and it may continue in the near future.

-Corn output in 2011 is expected to witness a rich harvest in China, and corn price may stay relatively stable in the rest months this year.

For more information about Corn Product China News, please feel free to contact us at econtact@cnchemicals.com

(Guangzhou China, September 22, 2011)

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