China Starch Output Continues to Grow in 2011

Guangzhou China, July 29, 2011 – The latest issue of Corn Products China News released by CCM presents that China's total output of starches reached 19.7 million tonnes in 2010, up by 9.7% over 2009.

The increase in starch output in 2010 is mainly driven by the strong demand for starch in downstream industries, like starch sugar, sugar alcohol and modified starch. Statistics show that total output of starch sugar products (liquid) increased by 13.1% in 2010 over 2009. Particularly, the output of high fructose corn syrup (HFCS, one kind of starch sugar) reached over 500,000 tonnes in 2010, up 41% over 2009 because sucrose price in China skyrocketed to a high level in 2010.

It's believed that the total output of starch in China will keep growing in 2011 thanks to its booming downstream market. Particularly, the output of potato starch will be stimulated to rise by the increase in China's anti-dumping duty on the EU's potato starch since April 2011. (The anti-dumping duty has been increased to 12.6%-56.7% since 19 April 2011 from 17%-35% before.) Output of corn starch is greatly affected by government policy. At present, constructing new production lines of corn starch will be hard to get approval. And if there are no other restriction policies to come out, it's believed that the output of corn starch will increase this year.

More news about the industrial trend, company dynamics, market price, and future forecast are unveiled in the latest issue of Corn Products China News.

The following highlights are covered in the latest issue of Corn Products China News:

-Total output of starch in China increased by 9.7% in 2010 over 2009.
-Northeast Pharmaceutical has begun to suspend its VC production for routine maintenance since 15 July 2011.-Compared with April 2011, total import volume of corn products in May 2011 increased, but the export volume dropped.-Lysine price maintains an uptrend in July 2011 over last month, while prices of tryptophan, threonine, and methionine perform relatively stable.-Price of VB2 witnesses an uptrend in July 2011, which will continue in the near future as believed.

-Shandong Longlive begins to go public on 20 July 2011, but its fuel ethanol business arouses concerns about the company’s prospect.-Global Bio-chem was granted the BioPreferred label by USDA for its polyol chemical biopropylene glycol in June 2011.-Xiwang Sugar is going to purchase two starch production lines and two production lines of maltodextrin from Xiwang Pharmaceutical in late 2011.-Xanthan gum is expected to have a promising market in 2011.-Some inferior capacities in citric acid, MSG and alcohol industries are to be eliminated by the end of 2011.-Luwei Pharmaceutical becomes one of the largest sorbitol manufacturers with 50,000t/a capacity in 2011.-Import volume of cassava starch is expected to be higher in 2011 over 2010 thanks to its booming demand in China.-It’s found through a questionnaire survey that corn price still has room for increasing before new corn comes out in 2011 as expected.

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