Tuesday, February 18, 2014

China's sucralose export: export share of top two exporters increases in Jan.-Nov. 2013

In fact, compared with most sucralose producers in China, sucralose's price advantage is a key reason for JK Sucralose and Changzhou Niutang capturing more export share. JK Sucralose and Changzhou Niutang were the only two sucralose producers in China with capacity of over 1,000t/a in 2013. In general, larger capacity means lower production cost, as a result, both of JK Sucralose and Changzhou Niutang have the ability to keep export price of their products lower than the other producers' and improve its products' competitiveness.

In addition, it is estimated that there is a strict quality control mangement at JK Sucralose and Changzhou Niutang compared to other domestic producers'. For example, according to Ji'an Entry-Exit Inspection and Quarantine Bureau, five batches of sucralose products by a main sucralose producer in Ji'an city, Jiangxi province were returned in 2013 due to quality problem. Based on this, it is not hard to estimate the difference in quality between the two top producers and other producers in China.

Product with high-quality and low-price is beneficial for JK Sucralose and Changzhou Niutang to attract more attentions from overseas downstream enterprises. Export volume of China's sucralose increased by 360 tonnes in the first eleven months of 2013 compared with the same period of 2012, therefore, the increase of 273 tonnes was produced by the top two producers. Naturally, large increase in export volume of top two producers resulted in their export share increase in China's sucralose export.

Export share increase of top two sucralose producers in China may be a negative message for the existing sucralose producers at present and new sucralose entrants in the near future. Because of the good prospect of China's sucralose, investment in domestic sucralose industry became overheating in recent years, with a sharp increase in national capacity of sucralose at the same time. And it is predicted that total capacity of sucralose in China will continue to show a significant increase in following years. However, the more export share the top two producers enjoy, the less export share the remaining sucralose producers in China can share. As an export-oriented industry, less export share means that the competition among the remaining sucralose producers in China will become more fierce in the near future.

The news above was sourced from Sweeteners China News issued by CCM in February.

Table Contents of Sweeteners China News 1402:
Shandong Longlive acquires financial subsidies and special funds
MOA issues Approved Feed Additives (2013)
Shandong Fuyang's project of maltose and trehalose starts trial run
Guilin layn to increase capacity of plant extracts
China's maltodextrin: ex-works price changes little in 2013
FOS & GOS to benefit more from domestic diary industry in future
Domestic ex-factory price of tripotassium glycyrrhizinate keeps at high level in 2013
Shandong Bailong may explore overseas market in 2014
PureCircle to continue benefiting from innovations following GRAS Affirmation for Reb M
JK Sucralose and Thomson Biotech issue disclaimers on online sales successively
Opposite export performance of Changzhou Niutang in June-Nov. 2013 compared with in Jan.-May
Export overview of some sweeteners and raw materials in China, December 2013
China's sorbitol: overseas demand turns strong and export price up in July-Nov. 2013
China's sucralose export: export share of top two exporters increases in Jan.-Nov. 2013
Performance of China's sucrose industry at beginning of 2013/2014-an overview
Ex-factory prices of sweeteners in China in January 2014

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