Find Hot News in Corn Products China News 1212

Published on the 20^th every month, Corn Products China News is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of corn market dynamics, analyze the market data and trends. Major columns include the latest information on new price fluctuation, new market trends and intelligence, new legislations and policies, new technologies, new area dynamics and new corn supply that are shaping the market.

Following are headline news of the latest issue of Corn Products China News:

Market price of MSG stops downtrend in Dec. 2012

The market price of MSG in China stops declining in early Dec. 2012 due to its increasing cost from corn and declining supply.

Domestic market price of corn starch turns from downtrend to slight uptrend in Dec. 2012

Domestic market price of corn starch turns from downtrend to slight uptrend in Dec. 2012 due to growing demand and cost.

Baolingbao shows application solutions for its functional sugars

Baolingbao shows some application solutions for its functional sugars in downstream industries, which may increase demand for these products in the future.

Changshouhua Food makes new progress in corn oil

Some researches help Changshouhua Food make great progress in corn oil, producing corn oil with higher quality and less cost and developing a new product.

Three research projects of Longlive Bio-technology pass assessment

Three researches of Longlive Bio-technology are assessed to have reached internationally advanced level, which can help the company earn more profits in the future.

Domestic VC and VB2 perform badly in 2012

Domestic VC and VB2 post depressed performance in 2012 and it is hard for them to get rid of the tough situation in H1 2013.

Corn-based ethanol performs poorly in China in 2012

Corn-based ethanol in China performs poorly in 2012 due to the depression of its two main products, corn-based edible ethanol and corn-based fuel ethanol.

Government launches 2012 temporary reserve of corn

On Nov. 15, 2012, Chinese government launches 2012 temporary reserve of corn to prevent its market price from decreasing sharply and protect the interests of farmers.

Substitution of wheat for corn declines in Q4 2012

Owing to the decreasing market price of corn and increasing market price of wheat in Q4 over Q3 2012, the substitution of wheat for corn as feed declines.  

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Policies to Restrict Domestic Corn Deep-processing Industry from Jan. 2011 to April 2012

From Jan. 2011 to April 2012, Chinese government has implemented a series of policies to inhibit the fast development of corn deep-processing industry, the second largest consumption field of corn, with an ultimate purpose to promote the healthy growth of the industry, according to CCM International’s June issue of Corn Products China News.

Generally, Chinese government regulates corn deep-processing market majorly through economic means (policy 2, 7, 8 and 9) and administrative means (policy 1, 3, 4, 5 and 6). For example, policy 7 and 8 indicate that the government restricts the development of grain fuel ethanol, leading to the decreasing profit of grain fuel ethanol. As a result, cellulose fuel ethanol has become more competitive than grain fuel ethanol, attracting more producers to newly build or ramp up their cellulose ethanol capacities. For example, COFCO Bio-chemical (Anhui) Co., Ltd., a nationally designated fuel ethanol producer with corn as raw material, tried to produce cellulose fuel ethanol by cooperating with Novozymes (China) Biotechnology Co., Ltd. in 2012. Hence, government's regulatory policies can effectively guide domestic corn market to develop towards the right direction.

 

In Guidance Catalogue for Industrial Restructure (2011 edition) (the Guidance Catalogue), some corn deep-processing products were restricted such as corn starch, vitamin C and vitamin B2. Besides, inferior production lines of some corn deep-processing products were indicated to be eliminated such as ethanol, citric acid, monosodium glutamate and corn starch, which are in terrible over-capacity. In general, the restriction and elimination of these products enforce their production to be concentrated in fewer and larger producers with better technologies and lower cost. Hopefully, the restructure and integration will help to make these products develop healthily and increase their competition power in global market. 

Nevertheless, not all products of corn deep-processing industry are restricted. According to the Guidance Catalogue, corn oil, minority amino acids (amino acids except for glutamic acid and lysine) produced by fermentation, new enzymes, polyols and functional fermented products are encouraged, because their supplies haven't meet their demands yet. With promising future, they have benefited their producers much. For instance, Shandong Longlive Bio-technology Co., Ltd. (Longlive Bio-technology), a main xylo-oligosaccharide producer in China, made a remarkable 41.74% gross profit margin in its xylo-oligosaccharide business in 2011, as showed in its 2011 annual report. To obtain more profits, Longlive Bio-technology is building a new xylo-oligosaccharide production line with the capacity of 6,000t/a.   

 

Overall, Chinese government will keep restricting the development of corn deep-processing industry in the future. Therefore, related corn producers need to improve the competitiveness of their products by strengthening the development of encouraged products by the government and so on. For instance, seeing the remarkable profit that Meihua Holdings Group Co., Ltd. has obtained from minority amino acids in 2011, Fufeng Group Co., Ltd. plans to expand its production lines of the products in the future, as mentioned in its 2011 annual report.

Source: Corn Product China News 1206

http://www.cnchemicals.com/Newsletter/NewsletterDetail_6.html

Content of Corn Products China News 1206:

China's export of MSG increases in 2011

Domestic output of HFCS increases by 28.3% in 2011

Chinese corn products Imp. & Exp. analysis in April 2012

Domestic prices of four key amino acids perform differently in June 2012

Market price of citric acid in China declines a little in June 2012

Longlive Bio-technology approved to produce bio-fuel ethanol

National standard of corn oil to be amended

Domestic threonine performs poorly in Q1 2012

Policies to restrict domestic corn deep-processing industry from Jan. 2011 to April 2012

Ukraine hopes to export corn to China

Chinese Minister of Agriculture supports the development of corn

Market price of home-made potato starch keeps low in June 2012

Corn Products China News, a monthly publication issued by CCM International on 20^th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1114.html