Find Hot News in Sweeteners China News 1311

Following are headline news of the latest issue of Sweeteners China News:

China's import quota for sucrose to remain 1.945 million tonnes in 2014

China's total import quota for sucrose will remain 1.945 million tonnes in 2014. However, it remains unknown whether the sucrose import volume continues to be large in 2014 as in the current year.

Opportunities and challenges coexist in domestic HIS industry

HIS occupies an important position in domestic sweetener industry in terms of not only production but also application. But based on obvious advantages and disadvantages of HIS, opportunities and challenges coexist in domestic HIS industry .

Export volume of China's erythritol decreases by 37% YoY in Jan. -Aug. 2013

The export volume of China's erythritol decreased sharply from 4,806 tonnes in the Jan. -Aug. 2012 to 3,024 tonnes in Jan. -Aug. 2013.

Suzhou Gaofeng establishing new production line of HFCS and maltose syrup for Coca-Cola

Suzhou Gaofeng is establishing new production line of HFCS and maltose syrup, in order to supply raw materials for Coca-Cola. But it is predicted that there will be some risks with Suzhou Gaofeng's investments, due to the overcapacity of HFCS and maltose syrup in China and decreasing demand of carbonated beverage in China.

Price trend for China's maltose syrup in first three quarters of 2013

The market price of 75% maltose syrup in China showed a downtrend in the first seven months of 2013, but it increased in Aug. -Sept. 2013.

Ex-factory price of China's FOS shows downtrend in Jan. -Sept. 2013

The ex-factory price of China's FOS (powder 95%) showed a downtrend in Jan. -Sept. 2013, which can be attributed to the decrease in raw material costs and intense competition in domestic FOS industry.

Ex-factory prices of sweeteners in China in October 2013

Ex-factory prices of sweeteners in China in October 2013

Export overview of some sweeteners and raw materials in China, September 2013

Export overview of some sweeteners and raw materials in China, September 2013

Two Chinese leading sucrose producers suffer huge loss in first nine months of 2013

Two Chinese leading sucrose producers suffer huge loss in first nine months of 2013

Orders for stevia sweetener met by Guilin Layn decreases sharply in first nine months of 2013

Orders for stevia sweetener met by Guilin Layn decreases sharply in first nine months of 2013

Jiangsu Ogo to make debut in domestic functional oligosaccharide industry

With confidence in the prospect of domestic functional oligosaccharide industry, Jiangsu Ogo invested USD14.22 million in the establishment of functional oligosaccharide projects. However, the future consumption of functional oligosaccharide in China may not be as optimistic as the company expects.

Domestic corn prices predicted to decline slightly in 2013/2014

Domestic corn prices are predicted to decline in 2013/2014 due to the oversupply of corn in China. But the reduction range is also believed to be small, in view of China's government' efforts to protect the profits of domestic corn growers.

Shandong Longlive signs cooperative agreement with UFRJ

Shandong Longlive signs cooperative agreement with UFRJ

Export volume of China's syrup sorbitol increases sharply in May-July 2013

The export volume of China's syrup sorbitol was 22,248 tonnes in May -July 2013, up 55% YoY.

Baolingbao obtains patent certificate in Oct. 2013

Baolingbao obtains patent certificate in Oct. 2013

China's xylitol export in Jan. -July 2013: quantity increases sharply while price continues to decline

It is believed that the demand increase of China's xylitol from overseas market boosted its export volume in Jan. -July of 2013, while producers continued to face the falling export prices of their xylitol.

Baolingbao engaged in investments in banks' wealth management products since June 2013

Baolingbao is increasing its investment in wealth management products since June 2013. Though Baolingbao expressed that its purpose was to improve the service efficiency of its funds, the company is believed to have not much enthusiasm for its main business at present.

About CCM

As a leading market research consulting company in China with more than 10-year-experience, 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.

Contact

Email: econtact@cnchemicals.com

Tel: 86-20-37616606

Fax: 86-20-37616968

Find Hot News in Sweeteners China News 1310

Following are headline news of the latest issue of Sweeteners China News:

China's aspartame export not as optimistic as it shows under independent HS code

The export volume of China's aspartame did not increased as sharply as it showed under its independent HS code in H1 2013.

International and domestic factors together impact China's sucrose price in Q4 2013

It is predicted that the latest minimum purchase price of sugarcane in the extraction season of 2013/2014 and import volume of sucrose in China in the remaining months of 2013 will be the key factors for the trend of China's sucrose price in Q4 2013.

China's mannitol export: both volume and price increase in Jan. -Aug. 2013

The export volume of China's mannitol increased 17.37% YoY to 5,621 tonnes in Jan. -Aug. of 2013. And the average export price of China's mannitol also showed an uptrend at the same time.

PureCircle: sales performance good while suffering continous losses in FY2013

The total revenue of PureCircle witnessed a dramatic increase in FY2013, thanks to the great growth in sales of high purity stevia sweeteners. However, the company continued to suffer losses at the same time, though the loss was at a lower level.

Guilin Layn turns loss into gain in H1 2013

Guilin Layn successfully turned profitable in H1 2013 after it suffered a huge loss in 2012.

Starch sugar producers selling more corn starch threatens domestic corn starch industry

Domestic starch sugar producers sold more corn starch products in H1 2013 in order to tackle the overcapacity of their corn starch. This has further worsened the condition of the domestic corn starch industry.

Guangxi government introduces policies to promote health development of its sucrose industry

Guangxi government introduces policies to promote health development of its sucrose industry

Wanfu Biotechnology continues to suffer losses in H1 2013

Wanfu Biotechnology continues to suffer losses in H1 2013

Ex-factory prices of sweeteners in China in September 2013

Ex-factory prices of sweeteners in China in September 2013

Zhaoqing Coruscate's starch syrup project starts to build in Sept. 2013

Zhaoqing Coruscate's starch syrup project starts to build in Sept. 2013

Export overview of some sweeteners and raw materials in China, August 2013

Export overview of some sweeteners and raw materials in China, August 2013

YoY growth rate of export volume of China's sucralose drops sharply in H1 2013

The YoY growth rate of the export volume of China's sucralose dropped in H1 2013 compared to in H1 2012, which might bring challenges for the domestic sucralose industry.

H1 2013 still tough for domestic crystalline glucose industry

H1 2013 was another difficult period for the domestic crystalline glucose industry, which was reflected in decreases in the domestic crystalline glucose price and the poor performance of domestic crystalline glucose producers. The gloomy outlook will probably continue in the near future.

Two domestic erythritol producers have contradicting erythritol sales performance in H1 2013

Baolingbao's erythritol sales performance showed poorer performance and Binzhou Sanyuan sales exhibited healthy performance in H1 2013 compared to H1 2012.

Functional oligosaccharide business of three oligosaccharide giants: challenges hidden behind good performance

The seemingly good sales performance of the functional oligosaccharide businesses of Baolingbao, Shandong Longlive and QHT in H1 2013 were actually accompanied by some challenges at the same time.

About CCM

As a leading market research consulting company in China with more than 10-year-experience, 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.

Contact

Email: econtact@cnchemicals.com

Tel: 86-20-37616606

Fax: 86-20-37616968

Two domestic erythritol producers have contradicting erythritol sales performance in H1 2013

According to CCM’s latest newsletter, Sweeteners China News 1310, Two Chinese erythritol producers, namely Baolingbao Biology Co., Ltd. (Baolingbao, whose production capacity of erythritol is 4,000t/a in China) and Shandong Binzhou Sanyuan Biotechnology Co., Ltd. (Binzhou Sanyuan, production capacity of erythritol is 5,000t/a in 2013), showed contradicting performance in erythritol sales in H1 2013. It is worth mentioning that Baolingbao is a leading functional sugar producer in China having several functional sugar products, while the erythritol business of Binzhou Sanyuan's contributed the total revenue for the company.

Data from the 2013 semi-annual report of Baolingbao revealed that its erythritol business performed poorly in H1 2013. The gross profit of Baolingbao's erythritol reached as high as USD0.81 million in H1 2012, but it decreased by 71% YoY to USD0.23 million in H1 2013. Baolingbao expressed that the poor performance of its erythritol was mainly attributed to the negative effect of the RMB appreciation and the demand decrease from several foreign countries. The appreciation of RMB caused the lower RMB export price (relative to the fixed dollar price for erythritol), reducing the gross profit margin. The gross profit margin of the company's sugar alcohol business decreased to 7.66% in H1 2013 from 15.87% in H1 2012. Besides, Baolingbao also indicated that some political factors caused decreases in its export volume. For example, the export volume to Japan and Philippines decreased in H1 2013 compared to H1 2012, due to the political disputes between China and these two countries.

Baolingbao could not explain well the poorer sales performance of its erythritol in comparison to that of Binzhou Sanyuan's. According to the 2013 semi-annual report of Binzhou Sanyuan, the revenue of the company's erythritol increased to USD1.37 million in H1 2013, with a YoY up of 36.10%. Binzhou Sanyuan was honest to express that the RMB appreciation also brought negative effects on its product's export price in H1 2013 but the company focused on cost reduction and product quality. For example, the company actively established a cooperation with the well known Chinese research institutions to improve its R&D ability and hence its revenue growth. The year-on-year increase rate of erythritol's cost of sales in H1 2013 was just 16.93%, far lower than the one of its revenue at the same time. And the gross profit margin of erythritol of Binzhou Sanyuan also increased to 17.89% in H1 2013.

It is crucial that Baolingbao invest in the R&D in line with Binzhou Sanyuan. As a producer exclusively engaging in the production of erythritol, Binzhou Sanyuan devotes its energy to the research and sales of its erythritol. On the contrary, due to its diverse product range, Baolingbao cannot focus entirely on erythritol's sales. As a result, under the adverse conditions such as the RMB appreciation in H1 2013, Binzhou Sanyuan could depend on product's high quality to attract more downstream customers from overseas market, enjoying more profit compared to the same period of 2012.

 

For domestic erythritol producers, the objective conditions are the same. Subjective factors, such as more investment in quality improvement and market exploration, will become the determinants to obtain good performance, especially under the bad objective conditions. As an export-oriented industry, the export volume of China's erythritol decreased sharply, from over 2,800 tonnes in the first five months of 2012 to just about 1,900 tonnes in the same period of 2013. Under the negative export conditions, domestic erythritol producers should have a positive attitude to solve their problems.

Table of Contents of Sweeteners China News 1310:

H1 2013 still tough for domestic crystalline glucose industry

Starch sugar producers selling more corn starch threatens domestic corn starch industry

Functional oligosaccharide business of three oligosaccharide giants: challenges hidden behind good performance

Two domestic erythritol producers have contradicting erythritol sales performance in H1 2013

Guilin Layn turns loss into gain in H1 2013

PureCircle: sales performance good while suffering continous losses in FY2013

Export overview of some sweeteners and raw materials in China, August 2013

YoY growth rate of export volume of China's sucralose drops sharply in H1 2013

China's aspartame export not as optimistic as it showed under independent HS code

China's mannitol export: both volume and price increase in Jan. -Aug. 2013

International and domestic factors together impact China's sucrose price in Q4 2013

Ex-factory prices of sweeteners in China in September 2013

Wanfu Biotechnology continues to suffer losses in H1 2013

Zhaoqing Coruscate's starch syrup project starts to build in Sept. 2013

Guangxi government introduces policies to promote health development of its sucrose industry

Sweeteners China News, issued by CCM on 5^th every month, offers timely update and close follow-up of market and company dynamics based on China’s sweeteners industry. It also releases the latest information on raw material supply, price update, import & export analysis as well as 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, and Consultancy Service. 

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

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

Find Hot News in Sweeteners China News 1309

Published on the 5^th every month, Sweeteners China News is a monthly publication released by CCM. It 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.

Following are headline news of the latest issue of Sweeteners China News:

China Starch: proportion of starch sugar in total revenue continues to increase in H1 2013

According to the 2013 semi-annual report of China Starch, the revenue from its starch sugar's operations continued to increase in H1 2013.

Net profit of JK Sucralose sees sharp increase in H1 2013

JK Sucralose performed well in H1 2013, which was reflected in the increase in its net profit compared with H1 2012.

Luzhou Bio-chem suffers net loss in H1 2013

Luzhou Bio-chem suffered a loss in H1 2013. It was the first time the company registered a net loss since 2010.

Profitability of China's acesulfame-K producers stays at low level

The profitability of China's acesulfame-K producers is at a low level at present and this situation may have no significant change in the near future.

Operating rate of China's starch sugar industry at low level in July -Aug. 2013

The poor performance of the domestic starch sugar industry did not get any better at the beginning of H2 2013, which was reflected in its lower operating rate than that in the same period of 2012.

Baolingbao competes with QHT by implementing low-price strategy on FOS sales

Baolingbao adopted the low-price strategy on its FOS product sales in the last two years, in order to heighten its competitiveness over QHT.

Ex-factory prices of sweeteners in China in August 2013

Ex-factory prices of sweeteners in China in August 2013

Export volume of China's saccharin increases by 3.33% YoY in Jan. -July 2013

According to China Customs, the export volume of China's saccharin increased by 3.33% YoY in Jan. -July of 2013, mainly owing to the increase in the demand from foreign emerging markets and domestic saccharin producers' efforts to explore overseas market.

Shanxi exports more cyclamate though national export volume decreases in Jan. -July 2013

Shanxi Province exported more cyclamate in the first seven months of 2013 compared to in the same period in 2012. Although China's average cyclamate export volume decreased in the same period, the price advantages in Shanxi Province and the support from the local government made the export volume increase of the province possible.

Sucrose revenue of COFCO Tunhe accounts for large proportion while contributes little

Sucrose revenue of COFCO Tunhe accounts for large proportion while contributes little

GLG: revenue of stevia sweetener business witnesses dramatic decrease in Q2 2013

A dramatic revenue decrease of GLG's stevia sweetener business in Q2 2013 resulted in a decrease in the company's total revenue in H1 2013 accompanied by an increase in net loss.

HFCS and corn starch expected to get listed as futures in China

SDIC CGOG Futures Co., Ltd. became a member of CSIA in July 2013, in order to assist DCE to promote the listing of HFCS and corn starch as futures.

Export overview of some sweeteners and raw materials in China, July 2013

Export overview of some sweeteners and raw materials in China in July 2013

Shandong Futaste obtains certificate on low-carbon xylitol

Shandong Futaste obtains certificate on low-carbon xylitol

CSA announces plan to prevent unreasonable expansion of raw sugar processing capacity

CSA announces plan to prevent unreasonable expansion of raw sugar processing capacity

Chenguang Biotech: stevia sweetener project expected to come into use in H2 2013

Chenguang Biotech: stevia sweetener project expected to come into use in H2 2013

Changzhou Guanghui plans to balance production and sales of aspartame in next five years

Changzhou Guanghui plans to balance production and sales of aspartame in next five years

Overall condition of domestic sucrose industry not as good as it seems

The overall condition of the domestic sucrose industry is not as good as it seems in H1 2013 mainly due to the oversupply problem, large temporary purchase volumes versus continuously decreasing prices, and poor performance of domestic sucrose producers.

Zhaoqing Coruscate cooperates with SCUT on research on starch sugar

Zhaoqing Coruscate made a production-teaching-research cooperation on starch sugar with a university from 8 August 2013, in order to improve its competitiveness. Similar cooperations between companies and universities may further increase.

Find Hot News in Sweeteners China News 1308

Following are headline news of the latest issue of Sweeteners China News:

Luzhou Bio-Chem establishs new subsidiary in July 2013

Luzhou Bio-Chem establishs new subsidiary in July 2013

QHT obtains another letter patent in July 2013

QHT obtains another letter patent in July 2013

Ex-works price of HFCS in China shows downtrend in H1 2013

The ex-works price of China's HFCS showed a downtrend in H1 2013, which can be attributed to both the serious oversupply and the falling price of sucrose in China.

Ex-factory prices of sweeteners in China in July 2013

Ex-factory prices of sweeteners in China in July 2013

Export business can not help solve oversupply of China's corn starch

It is predicted that the domestic corn starch producers can not solve the oversupply problem through export business, and that the concentration ratio of the domestic corn starch industry thereof may continue to increase in the near future.

Anhui Jinhe: revenue of acesulfame-K continues to decrease in H1 2013

The acesulfame-K revenue of Anhui Jinhe continued to decrease in H1 2013, which was quite different from the company's expectations.

Opinion solicitation for Approved Feed Additives (2013) conducted

Opinion solicitation for Approved Feed Additives (2013) was made by the Ministry of Agriculture in July 2013, according to which application ranges of some functional oligosaccharides would be expanded and some would be included as feed additives.

Changzhou Niutang: export volume of aspartame up while that of sucralose down in Jan. -May 2013

The export volume of aspartame of Changzhou Niutang increased in the first five months of 2013 compared with the same period in 2012, while the export of its sucralose showed a downturn.

Two domestic GOS producers witness steady growth in 2011-2013

The only two GOS producers in China witnessed a steady growth in recent three years. But both of them face few challenges presently.

China's erythritol industry: facing more challenges than opportunities at present

It is believed that the domestic erythritol industry is facing more challenges than opportunities at present.

Export overview of some sweeteners and raw materials in China, June 2013

Export overview of some sweeteners and raw materials in China, June 2013

Both import and export volumes of sucrose in China decline in H1 2013

Both import and export volumes of sucrose in China decline in H1 2013

Baolingbao acquires two letters patent

Baolingbao announced on July 15, 2013 that it acquired two letters patent on isomaltooligosaccharide and starch sugar.

Opinion solicitation for approving MOS as a new food material ongoing

Opinion solicitation for approving MOS as a new food material ongoing

Baolingbao predicts net profit decrease in H1 2013

Baolingbao predicts net profit decrease in H1 2013

Output of dried stevia leaves in China decreases in 2010-2012

Total output of dried stevia leaves in China decreased by about 72% from over 73,000 tonnes in 2010 to about 20,000 tonnes in 2012.

Xylitol producers in China mainly export crystalline products

The export volume of crystalline xylitol was far more than that of syrup xylitol in China in the first four months of 2013.

Export volume of China's sorbitol: crystalline down while syrup up

According to the China Customs, it is shown that export volume of China's crystalline sorbitol decreased in Jan. - April, 2013 while the situation of China's syrup sorbitol was reverse.

Capacity of raw sugar processing projects in China becoming larger

High-capacity raw sugar processing projects in China will likely to impact on the domestic sucrose market.

About CCM

As a leading market research consulting company in China with more than 10-year-experience, 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.

Contact

Email: econtact@cnchemicals.com

Tel: 86-20-37616606

Fax: 86-20-37616968

Sweetener has a good prospect in China

According to Baolingbao, the acquisition of the patents will be beneficial due to independent intellectual property rights on its main products of the company, by which the company can continue to maintain its technology leadership and enhance its core competitiveness.  

Domestic sweetener producers have paid more attention to their independent intellectual property rights for their main products in recent years. For example, on June 17, 2013, Quantum Hi-Tech (China) Biological Co., Ltd. (QHT), a main manufacturer of fructooligosaccharide (FOS) and galacto-oligosaccharide (GOS) in China, announced that the company acquired two letters patent on new methods of producing functional oligosaccharide (Please refer to Sweeteners China News Vol.3 July Issue, p5, QHT acquires two letters patent on functional oligosaccharide). It is believed that more and more letters patent for sweetener products' production will be acquired by domestic sweetener producers in the near future, which can improve the total competitiveness of the domestic sweetener industry.

It is believed that the domestic erythritol industry is facing more challenges than opportunities at present. Being a healthy sweetener, erythritol has a good prospect in China and potential demand internationally is huge. Many food and beverage companies are testing in their products, including soft drinks, sugar-free chewing gum, baked food, etc. On 27 Dec. 2012, Guangzhou Pharmaceutical Company Limited, which owns the well-known Chinese herbal tea brand named Wanglaoji, launched its sugar-free Wanglaoji products, and erythritol is added instead of sucrose.

Sweeteners China News is a monthly publication released by CCM. It 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, and Consultancy Service. 

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

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

Find Hot News in Sweeteners China News 1308

Following are headline news of the latest issue of Sweeteners China News:

Luzhou Bio-Chem establishs new subsidiary in July 2013

Luzhou Bio-Chem establishs new subsidiary in July 2013

QHT obtains another letter patent in July 2013

QHT obtains another letter patent in July 2013

Ex-works price of HFCS in China shows downtrend in H1 2013

The ex-works price of China's HFCS showed a downtrend in H1 2013, which can be attributed to both the serious oversupply and the falling price of sucrose in China.

Ex-factory prices of sweeteners in China in July 2013

Ex-factory prices of sweeteners in China in July 2013

Export business can not help solve oversupply of China's corn starch

It is predicted that the domestic corn starch producers can not solve the oversupply problem through export business, and that the concentration ratio of the domestic corn starch industry thereof may continue to increase in the near future.

Anhui Jinhe: revenue of acesulfame-K continues to decrease in H1 2013

The acesulfame-K revenue of Anhui Jinhe continued to decrease in H1 2013, which was quite different from the company's expectations.

Opinion solicitation for Approved Feed Additives (2013) conducted

Opinion solicitation for Approved Feed Additives (2013) was made by the Ministry of Agriculture in July 2013, according to which application ranges of some functional oligosaccharides would be expanded and some would be included as feed additives.

Changzhou Niutang: export volume of aspartame up while that of sucralose down in Jan. -May 2013

The export volume of aspartame of Changzhou Niutang increased in the first five months of 2013 compared with the same period in 2012, while the export of its sucralose showed a downturn.

Two domestic GOS producers witness steady growth in 2011-2013

The only two GOS producers in China witnessed a steady growth in recent three years. But both of them face few challenges presently.

China's erythritol industry: facing more challenges than opportunities at present

It is believed that the domestic erythritol industry is facing more challenges than opportunities at present.

Export overview of some sweeteners and raw materials in China, June 2013

Export overview of some sweeteners and raw materials in China, June 2013

Both import and export volumes of sucrose in China decline in H1 2013

Both import and export volumes of sucrose in China decline in H1 2013

Baolingbao acquires two letters patent

Baolingbao announced on July 15, 2013 that it acquired two letters patent on isomaltooligosaccharide and starch sugar.

Opinion solicitation for approving MOS as a new food material ongoing

Opinion solicitation for approving MOS as a new food material ongoing

Baolingbao predicts net profit decrease in H1 2013

Baolingbao predicts net profit decrease in H1 2013

Output of dried stevia leaves in China decreases in 2010-2012

Total output of dried stevia leaves in China decreased by about 72% from over 73,000 tonnes in 2010 to about 20,000 tonnes in 2012.

Xylitol producers in China mainly export crystalline products

The export volume of crystalline xylitol was far more than that of syrup xylitol in China in the first four months of 2013.

Export volume of China's sorbitol: crystalline down while syrup up

According to the China Customs, it is shown that export volume of China's crystalline sorbitol decreased in Jan. - April, 2013 while the situation of China's syrup sorbitol was reverse.

Capacity of raw sugar processing projects in China becoming larger

High-capacity raw sugar processing projects in China will likely to impact on the domestic sucrose market.

About CCM

As a leading market research consulting company in China with more than 10-year-experience, 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.

Contact

Email: econtact@cnchemicals.com

Tel: 86-20-37616606

Fax: 86-20-37616968

Baolingbao enjoys large development potential in 2013

Baolingbao Biology Co., Ltd. (Baolingbao), one of the few large-scale corn deep-processing enterprises that may have seen both revenue and profit increase in China in 2012, may see continuous increase in 2013 due to the large potential increase in the sales of its products, according to CCM’s February Issue of Corn Products China News 1302. 

High fructose corn syrup (HFCS)

Domestic HFCS underwent decreasing performance in 2012 because of the declining market price of sugar, competitor of HFCS. However, Baolingbao's HFCS experienced a 10.27% year-on-year growth in revenue and merely a 0.92% year-on-year decrease in gross profit margin in H1 2012 despite the increasing cost from corn because a large part of Baolingbao's HFCS was sold to Coca-Cola, who had made a price commitment with Baolingbao. On Dec. 28, 2012, Baolingbao announced that the company had earned the pride of "Annual Platinum Supplier Award", the first honor that domestic HFCS suppliers of Coca-Cola have ever got, which would enhance the cooperation between Baolingbao and Coca-Cola. Miss Lv, Board Secretary of Baolingbao, predicted that the sales volume of the company's HFCS to Coca-Cola would increase by about 20% in 2013 compared with that in 2012. In 2011, Baolingbao's sales value to Coca-Cola was USD42.7 million, accounting for 50.8% of the sales value of the company's HFCS according to its 2011 annual report. Accordingly, Baolingbao's HFCS will perform better than others' under the expectation of unsatisfactory performance of HFCS caused by excessive supply of sugar in 2013. But the sales quantity of Baolingbao's HFCS will not see considerable increase because its HFCS production line has already reached full production.

Isomalto-oligosaccharide (IMO)

In Aug. 2012, Baolingbao was approved to be the unique feed-grade IMO producer in China in the next five years. And feed-grade IMO, a substitute for antibiotics, enjoys a promising market because Chinese government is cutting down the application quantity of the latter in feed. In Dec. 2012, China Central Television exposed "Fast-growing Chickens Event"–chicken raisers still used antibiotics to keep chickens healthy a week before being sold for meat, which enabled the public to know more inside stories about chicken cultivation and stimulate the consumption of feed-grade IMO in the future. Actually, as of middle Jan. 2013, Baolingbao had built cooperation relationship with more than ten feed producers such as Qilu Animal Health Products Co., Ltd. and the company's sales volume of feed-grade IMO had exceeded 2,000 tonnes, according to Baolingbao's official website. And Miss Lv predicts that the sales quantity of the company's feed-grade IMO will exceed 10,000 tonnes in 2013 and that of IMO (including food-grade and feed-grade ones) would reach about 40,000 tonnes this year, up 50% year-on-year. 

Fructo-oligosaccharide (FOS)

Miss Lv predicts that the sales volume of Baolingbao's FOS will reach 4,000-5,000 tonnes in 2013 while it was less than 1,000 tonnes in 2011 thanks to increasing demand for it. In April 2012, Chinese government approved FOS with sucrose as feedstock (content≥95%) to be added in infant and baby formulae, which will maintain increasing demand for FOS in 2013 in China.

Erythritol

Miss Lv estimates that the sales volume of Baolingbao's erythritol will see rapid growth in 2013 thanks to the increasing awareness of the product in downstream industries. Recently, Guangzhou Wanglaoji Pharmaceutical Company Limited, a leading herbal tea producer in China, indicated that it had invested USD578 million to build a new production line for herbal tea with no sugar and low content sugar in Yucheng, Shandong. The herbal tea will use erythritol as sweetener, which will increase demand for Baolingbao's erythritol which Is located in Yucheng as well. Moreover, Baolingbao plans to launch a new end-product containing erythritol and oligosaccharides, which may be put into the market in H1 2013. Actually, erythritol of Baolingbao has seen rapid growth in recent years. The 176.11% year-on-year growth in the revenue of sugar alcohol of Baolingbao in H1 2012 was mainly attributed to the surging sales volume of erythritol.

However, there are some risks in the growth of sales volume of Baolingbao's products. On one hand, Coca-Cola has not guaranteed the purchase quantity of HFCS from Baolingbao, so Baolingbao still has to compete against other HFCS suppliers of Coca-Cola even though its product has been highly praised by Coca-Cola. On the other hand, feed-grade IMO, herbal tea with no sugar or low content sugar and Baolingbao's new end product are new to consumers, which require a great deal of promotion, and the growth of these products will be lower than expected if their market promotion is unsuccessful.

Table contents of Corn Products China News 1302:

USDC preliminarily finds dumping of imports of xanthan gum from China

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

2012 review of Chinese corn products Imp. & Exp.

Domestic market price of HFCS remains downtrend in Feb. 2013

Market prices of corn products as feed keep steady in China in Feb. 2013

Baolingbao enjoys large development potential in 2013

Market price of corn oil fluctuates in China in 2012

BCAAs develop slowly in China in recent years

2012 review of corn market in China

Corn Products China News, a monthly publication issued by CCM on 20^th, features “Supply and Demand”, “Import and Export Analysis”, “Price Update”, “Market & Company Dynamics”, “Policy”, “Corn Supply” and other more information researched and reported by CCM’s professional journalists. It is a reliable intermediate for you to know more about the corn industry in China even in the globe.

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.

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