Chinese Government Starts A Temporary Purchasing Plan of Sucrose

On 7 February 2012, the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Finance and the Agricultural Development Bank of China jointly published the Notice of the First Temporary Purchasing Plan of Sucrose in 2012, which will have a positive effect on the consumption of Chinese sweeteners, especially that of starch sugar in the near future, according to CCM’s March issue of Sweeteners China News.

 

According to the notice, the temporary purchasing of sucrose will be conducted in China Merchandise Reserve Management Centre, and the purchasing volume of sucrose will be 1 million tonnes, almost equaling to a month's consumption volume in China. Chinese government plans to carry out the first purchase in two batches, and the first batch of 0.5 million tonnes of sucrose, produced after Oct. 2011, has already started since 10 February 2012. And the basic purchasing price for this sucrose is USD1,039/t, which is close to the product's current average market price. 

   

Continuous decrease of sucrose price is the key reason for Chinese government to purchase sucrose from sucrose producers. Chinese government explained in the notice that the purpose of temporary purchase of sucrose is to stabilize domestic sucrose price and protect the benefit and production enthusiasm of sugarcane growers. In fact, according to China Sugar Index (CSI), the average price of sucrose has decreased continuously since Aug. 2011, which saw the highest level of domestic sucrose price till now. In mid Feb. 2012, the average price of sucrose was USD1065.23/t, decreasing by 15.43% over that in Aug. 2011, which is caused by the oversupply of sucrose. On one hand, Chinese government released seven batches of sucrose stock with a total volume of 1.48 million tonnes to restrain the growth of domestic sucrose price in the first eight months of 2011, which was caused by the insufficient supply of sucrose in the 2010/2011 extraction season; on the other hand, China's output of sucrose may have reached 12 million tonnes in the extraction season of 2011/2012, increasing by about 14.83% over that in 2010/2011. 

Some experts expected that the temporary purchasing plan of sucrose may increase the price of sucrose in the near future. Mr. Li, an analyst of sucrose futures, expressed that the sucrose market is in the off-season after the Spring Festival, so the demand for sucrose is relatively weak; however, Chinese government's purchase of sucrose can help sucrose producers relieve the pressure. In fact, sucrose purchasing will be conducted both in production areas and sales areas, which can enhance the effect of sucrose purchasing on the market. As a result, the temporary purchasing plan of sucrose may obviously support domestic sucrose price to rise steadily in the near future.

 

Undoubtedly, the expected increase of sucrose price will increase sweeteners' competitiveness, directly boosting the demand for sweeteners. Actually, nearly all sweetener producers believe the expected increase of sucrose price will have a positive effect on their products, but the effect may vary with different sweeteners. For instance, most high intensity sweetener (HIS) producers think the effect from sucrose price increase will be small. Because as sucrose's substitute product, HIS are usually priced at much lower prices than sucrose is. Therefore, it is hard for the regular increase in sucrose price to impose large impact on HIS. While starch sugar producers explain that the price decrease of sucrose has reduced their sales to some extent before, and thus the expected price increase caused by the temporary purchasing plan will surely be beneficial for their sales of the product.

Source: Sweeteners China News 1203

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1203:

China imported 2.92 million tonnes of sucrose in 2011

Chinese output of soft beverages reaches 117.6 million tonnes in 2011

Shandong Longlive passes review of High-Tech Enterprises in Feb. 2012

Technical necessity and safety of four sweeteners to be evaluated in China

Wanfu Biotechnology's net profit increases in 2011

China exported 16,660 tonnes of xylitol in 2011

Average export price of sucralose decreases by 9.6% in 2011

Market overview of stevia sweetener in Feb. 2012

Overview of crystalline fructose in 2011

Anhui Jinhe's expansion projects of acesulfame-K to launch in June 2012

QHT to expand terminal sales networks through acquisition

HFCS and functional oligosaccharide to be profit growth points of Baolingbao in 2012……

If you are interested in CCM International’s March issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

(Guangzhou China, March 8, 2012)

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM

CCM 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 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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_999.html

Increasing Sucrose Supply Might Drag Fast Development of Starch Sugar

CCM International has newly released the December issue of Sweeteners China News, with the top story that the increasing sucrose supply might slow down the fast development of starch sugar, such as high fructose corn syrup (HFCS) and glucose.

Compared with other sweeteners, sucrose is the best replacement for starch sugar. As the sweetness, properties and application ranges of sucrose are much closer to those of starch sugar. The improvement in sucrose industry can affect the starch sugar industry obviously. That means inadequate supply and price increase of sucrose can boost the development of starch sugar, while rising supply might slow down its growth.

China's output of sucrose may reach 12 million tonnes in the extraction season of 2011/2012 (from October 2011 to April 2012), according to Mr. Ma, Vice Chairman of China Sugar Association (CSA). That is to say the demand growth of starch sugar may decline due to the increase in sucrose supply.

Starch sugar producers admit the influence of expected sucrose supply, but they also believe that the starch sugar industry will develop in 2012. For example, a sales manager of Zhucheng Dongxiao Biotechnology Co., Ltd., one main glucose producer with capacity of 300,000t/a, expressed that the demand for starch sugar will increase in 2012 thanks to its lower price compared with sucrose, but its growth rate may be lower than that of 2011 due to the increase in sucrose supply. In general, the starch sugar industry will keep on developing in 2012, but the speed may be slower.

More details please check Sweeteners China News 1112.  Headline News includes:

-On 2 November 2011, MEP carries out environmental verification of starch, starch sugar and alcohol producers.

-Stevia sweetener's application as a natural and non-caloric sweetener in food and beverages in the EU has finally been approved on 12 November 2011, which will drive Chinese stevia sweetener industry forward.

-Though China's stachyose industry develops better in 2011 than 2010, it still faces some challenges. However, it is believed that it also embraces opportunities brought by the end products.

-It is reported that Jiangsu Lianwei will launch a cyclamate project in Q1 2012; however, insiders of the cyclamate industry have a negative outlook about this project.

-Capacity expansion of erythritol may exacerbate its overcapacity in the near future, since the market demand grows slower than the capacity does.

-On 15 November 2011, Hebei Shengxue is listed on Tianjin Property Rights Exchange to transfer 93.181% of its share due to the net profit loss. However, its net profit loss is likely to be a special case in the prosperous domestic glucose market. 

-On 29 October 2011, JK Sucralose held a foundation stone laying ceremony of its third phase of sucralose project, indicating the company's confidence in the good prospect of sucralose.

-Domestic price of fructo oligosaccharide has witnessed a downtrend since July 2011 majorly due to the price decrease of its key raw material sucrose.……

If you are interested in CCM’s December issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

(Guangzhou China, December 7, 2011)

About CCM

CCM 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 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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_878.html

Sucrose Supply Rise May Slow down Fast Development of Starch Sugar

According to Mr. Ma, Vice Chairman of the China Sugar Association (CSA), China's output of sucrose may reach 12 million tonnes in the extraction season of 2011/2012 (from October 2011 to April 2012), which may slow down the fast development of starch sugar, such as high fructose corn syrup (HFCS) and glucose, according to CCM’s December issue of Sweeteners China News.

On 1 November, China's Production and Sales Meeting of Sucrose in Extraction Season of 2011/2012 was held in Haikou City, Hainan Province. In accordance with the meeting, the continuous diminished output of sucrose in recent three years is likely to be ended, and the output of sucrose may increase by about 14.83% in extraction season of 2011/2012 over that in 2010/2011. However, the expected increase in sucrose supply may slow down the fast development of starch sugar through reducing the replacement demand for starch sugar.

Compared with other sweeteners such as high intensity sweeteners and functional oligosaccharides, the sweetness, properties and application ranges of starch sugar are much closer to those of sucrose. And domestic starch sugar industry is benefited from the inadequate supply and price increase of sucrose; thus the improvement in sucrose industry can impact the starch sugar industry obviously.

The demand growth of starch sugar may decrease due to the increase in sucrose supply in 2012. In recent three years, inadequate sucrose supply in the past three extraction seasons of sucrose has given a boost to starch sugar's development. For example, both the outputs of sucrose in the extraction seasons of 2009/2010 and 2010/2011 were four million tonnes less than the sucrose consumption (TABLE), which has offered more potential market shares to other sweeteners, especially starch sugar. Meanwhile, starch sugar has developed well since 2009. For instance, the total output of starch sugar is expected to reach about 10 million tonnes in 2011 with a yearly growth rate of 8.7%. According to the CSA, the consumption of sucrose may continue to be about 14 million tonnes in 2012, in consideration of which, the replacement demand for starch sugar may reduce in 2012 due to the output increase of sucrose, which may reduce the total demand growth of starch sugar in 2012.

Besides, the increase in sucrose supply may further drive down the sucrose price, which may influence the gross margin of starch sugar producers. Caused by an inadequate sucrose supply, sucrose price has mainly shown a rising trend from October 2008 to August 2011. Chinese government has released sucrose stock for eight times with a total volume of 1.66 million tonnes in the first eight months of 2011, aided by which, the sucrose price has begun to decrease since August 2011. The increase in sucrose supply in the extraction season of 2011/2012 may further impel the sucrose price decrease in 2012, which may weaken the main advantage of starch sugar—competitive price—and suppress the price of starch sugar in 2012. In fact, though prices of starch sugar's raw materials—corn and corn starch—have deceased in recent few months due to the corn harvest, it is estimated that they may increase again in 2012. Therefore, the gross margin of starch sugar may decrease in the future.

Starch sugar producers admit the influence of the expected sucrose supply, but they also believe that the starch sugar industry will develop in 2012. For example, a sales manager of Zhucheng Dongxiao Biotechnology Co., Ltd., one main glucose producer with capacity of 300,000t/a, expressed that the demand for starch sugar will increase in 2012 thanks to its lower price than sucrose, but its growth rate may be lower than that of 2011 due to the increase in sucrose supply. In general, the starch sugar industry will keep on developing in 2012, but the speed may be slower.

Source: Sweeteners China News 1112

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1112:

Chinese government carries out environmental verification of starch and starch sugar producers

EU's final approval of stevia sweetener to drive Chinese stevia sweetener industry forward

Stachyose: opportunities and challenges co-exist

Jiangsu Lianwei to launch cyclamate project in Q1 2012

Overcapacity in China's erythritol industry may exacerbate in near future

Hebei Shengxue transfers 93.181% share

Layn cooperates with Health & Nutrition Business Unit of Cargill

Baolingbao's profits of FOS and erythritol may increase in 2012

JK Sucralose starts to construct the third phase of sucralose project

Three L-phenylalanine projects to be launched in H1 2012

Mannitol price increases obviously in Jan.-Nov. 2011

Domestic price of FOS has a downtrend since July 2011……

If you are interested in CCM’s December issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

(Guangzhou China, December 6, 2011)

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM

CCM 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 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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_870.html

September Issue Sweeterner China News Comes Out

CCM published the latest issue of Sweeterner China News on September 5^th , 2011, which covers the hot topics and dynamics of China's sweetener industry.

Some high intensity sweeteners developed well in H1 2011. For example, aspartame continued to enjoy promising development in H1 2011, which attracts some producers to expand their aspartame business. 290 tonnes of sucralose was exported in H1 2011, and the yearly growth rate was 110%.

Besides, some producers actively expand their capacity of starch sugar. For example, Global Sweeteners is expanding its corn starch capacity of 210,000t/a and Star Lake Bioscience plans to market its HFCS in October 2011.

However, the profit of some sweeteners decreased, such as erythritol, FOS and GOS. The main reason is the cost of raw material increased, which was hard to be transferred to downstream industries.

The sucrose price is believed to be the main reason behind the performance of sweetener market, just as showed in the article "Government Strengthens Adjusting Control of Sucrose Price".

All details of the above stories will be shared in CCM’s September issue of Sweeterner China News. For more information about it, please feel free to contact us at econtact@cnchemicals.com

More news content in CCM’s September issue of Sweeterner China News :

-Profit of erythritol decreases in H1 2011

-Aspartame industry develops well in H1 2011

-About 290 tonnes sucralose exported in H1 2011

-Overview of neotame in China

-Net profit of QHT falls nearly 50% in H1 2011

-Star Lake Bioscience to market HFCS in Oct. 2011

-Anhui Jinhe's acesulfame-K business may develop better in near future

-Jincheng starch puts its crystalline glucose production line into trial production

-Yongli Milk to build FOS production line

-Global Sweeteners expanding its corn starch capacity of 210,000t/a

-Ex-factory prices of Chinese sweeteners in August 2011

-Import & export analysis of Chinese saccharin in Jan.-July 2011

-Import & export analysis of Chinese sorbitol in Jan.-July 2011

-GLG to launch zero-calorie carbonated soft drinks in Aug. 2011

-Government strengthens adjusting control of sucrose price

-Bright Dairy buys 75% stake of Manassen Foods

-Corn may have bumper harvest in China in 2011

-CNRIFFI announces that research of stachyose gains success

-Conference of national beet industrial system held in Urumchi

-COFCO offers AUD120 million to purchase Proserpine Sugar

-Output of foods containing sugar increases much in July 2011

 (Guangzhou China, September 29, 2011)

About CCM

CCM 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 offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

GLG Built Stevia Breeding and Cultivation Centre in Anhui

GLG Life Tech Corporation (GLG), a world leader in the production of high-quality stevia, built a breeding and cultivation centre of stevia jointly with Anhui Science and Technology University in Anhui in June 2011. This centre is a unique provincial engineering research centre which is focused on breeding, cultivation and the breed improvement of stevia, according to CCM’s Sweeterner China News.

In light of the following two reasons, GLG believes that the stevia planting will develop well and the demand for stevia may keep increasing in the next several years, thus it has finally built this breeding and cultivation centre in Anhui.

First, the export volume of stevia sweetener has increased thanks to the growing overseas demand for it in recent years. Currently, China has already become the largest stevia sweetener supplier in the world, and around 80% of its total output of stevia sweetener is sold to overseas market. It reveals that the output of stevia is also increasing as stevia is the raw material of stevia sweetener.

Moreover, the consumption volume of stevia sweetener in China has also gradually increased for the development of sugar-free foods and beverages in recent years.

GLG builds the breeding and cultivation centre of stevia for the following two goals.

First, the centre will improve the breeding to get new stevia species which have higher steviol glycosides content in the leaves. And the major components in steviol glycosides are stevioside and rebaudioside A (RA). Those new species can help stevia sweetener processors produce high RA purity products. Moreover, the prices of high RA purity products such as RA 80%, RA 90% and RA 95% are much higher than that of stevioside, that is to say, the new species can bring GLG with high profits.

Second, the output of stevia will increase with the improving stevia planting level through education and training. What's more, the centre will help farmers learn new culture technique of stevia and prevent plant diseases and insect damage.

It is estimated that the planting industry of stevia will develop sustainably, then the output of stevia will also increase to ensure the supply. In fact, stevia is planted by native farmers and then sold as a raw material to the domestic stevia sweetener producers. On one hand, the increasing demand from stevia sweetener drives the producers to buy more stevia from farmers.

On the other hand, local governments also try their best to promote the planting industry of stevia, because it can increase the income of farmers. For example, Government of Anhui Mingguang held a purchasing meeting of stevia on 4 May 2010 which aims to help farmers sell their stevia at a reasonable price and also help stevia sweetener producers buy high quality stevia in the harvest season. That is to say, both the sweetener producers and the government are promoting the planting industry of stevia.

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

 (Guangzhou China, September 27, 2011)

About CCM

CCM 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 offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Erythritol industry in China to Keep Growing in the Future

Erythritol industry in China will keep on developing in the future, according to CCM’s Sweeterner China News.

Baolingbao Biology Co., Ltd. (Baolingbao), a leading Chinese producer of starch-based products and food ingredients, has been expanding its erythritol capacity, and the total capacity will reach 4,000t/a by the end of August 2011.

Baolingbao believes that the erythritol industry will develop well in the future and the demand for erythritol will also increase. Moreover, since the overseas consumption is more than the domestic one now, with the increasing overseas demand for erythritol, the domestic erythritol industry will keep on developing.

There were mainly five active erythritol producers in China by the end of 2010, with total capacity and output of 18,500t/a and 4,780 tonnes in 2010 respectively. The average operating rate of them is 25.84%, about 11% less than that of 2009. From 2006 to 2010, the capacity of erythritol had grown rapidly, while the growth of output had fallen behind. Besides, there were four producers, namely Zibo Zhongshi Green Biotech Co., Ltd., Shandong Futaste Pharmaceutical Co., Ltd., Shandong Binzhou Sanyuan Biotechnology Co., Ltd., O'Laughlin Industries Co., Ltd., using glucose to produce erythritol in order to improve the production efficiency, while Baolingbao uses corn starch in its erythritol production, which is with lower cost compared with that of using glucose.

Moreover, in 2010, among the five main active erythritol producers, four are concentrated in Shandong Province; only one is located in Tianjin City. Because erythritol is a kind of sugar alcohol and the sugar alcohol industry develops well in Shandong, most of the erythritol producers choose to be located in Shandong.

All in all, it can be predicted that the erythritol industry in China will keep on developing in the future based on the facts above.

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

 (Guangzhou China, September 27, 2011)

About CCM

CCM 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 offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China