China's corn output to reach 215 million tonnes in 2013/2014

According to forecasts from the National Grain & Oils Information Center and the China Food Industry Association, China's corn output may reach 215 million tonnes in 2013/2014, 7 million tonnes more than in 2012/2013. The increase in corn output may result in a decrease in the price of corn. According to CCM's data, the output and the annual market price of corn in China maintained an uptrend during 2009/2010-2012/2013.

Affected by the corn harvest in Oct. 2013, the pressure from imported corn and the depressed corn deep-processing industry, the domestic market is facing an oversupply of corn. 

According to China Customs' data, the average corn import price was USD306.3/t in the first eight months of 2013 in China. It was much lower than China's average market price of corn which was USD380.5/t. During this period, China imported more than 1.6 million tonnes of corn, which was already a relatively large number.

As for the corn deep-processing industry, it saw a downtrend. Xu Jiawan, the manager of the corn purchasing department of Cargill Biochemical (Songyuan) Co., Ltd. (Songyuan Cargill), said that the overall operating rate of the corn deep-processing industry was less than 50%. For instance, the average operating rate of domestic corn starch enterprises was presently as low as about 46%, owing to the oversupply and the weak demand for corn starch from downstream industries. Similarly, the average operating rate of alcohol enterprises is also relatively low.

Liu Xiaoran, deputy Secretary-General of the corn branch of the China Food Industry Association, estimates that domestic corn consumption will be just 197.5 million tonnes in 2013/2014, which is much less than the output of corn.

Due to the oversupply of corn, the market price of corn harvested in autumn may decrease and it may be even lower than the government's corn purchasing price for temporary reserves. Moreover, the overall quality of corn is not as high as before, due to the severe weather this year, which may also suppress the market price of corn.  

Recently, the purchasing prices of corn set by some leading corn deep-processing enterprises in Northeast China have decreased compared with those in 2012. For instance, on Sept. 25, 2013, Changchun Jincheng Corn Development Co., Ltd. (Changchun Jincheng), a subsidiary of Changchun Dacheng Industrial Group Co., Ltd., set its corn purchasing price at USD341.5/t (RMB2,100/t), USD9.8/t (RMB60/t) less than that in 2012. On Sept. 28, Songyuan Cargill set its corn purchasing price as the same as that of Changchun Jincheng, but the price was USD16.3/t (RMB100/t) less than that of last year. These companies' purchasing prices are all below the corn purchasing price for the temporary corn reserves set by the National Development and Reform Commission of China (NDRC).

As early as July 3, 2013, the NDRC announced that China would increase the purchasing price for temporary corn reserves in 2013/2014. The purchasing prices of corn (third-grade of the national standards) will be USD366.3/t (RMB2,260/t), USD366.3/t (RMB2,260/t), USD363.0/t (RMB2,240/t) and USD359.8/t (RMB2,220/t) in Inner Mongolia, Liaoning, Jilin and Heilongjiang (the main corn planting areas in China) respectively, which are all USD19.4/t (RMB120/t) higher than the prices of 2012. (For more details, please refer to Corn Products China News 1307: China increases temporary reserve price of corn in 2013/2014).

Source: Corn Products China News issued by CCM in October.

Table of Contents of Corn Products China News 1310:

China's corn output to reach 215 million tonnes in 2013/2014

Global Sweeteners'net loss increases to USD14.2 million, H1 2013

China's market price of VD3 rebounds sharply, Sept. 2013

China's lowest purchasing price of wheat to rise by RMB120/t in 2014

Low operating rate of soybean crushers relates to tight supply of soybean

Price update of corn products, Oct. 2013

China Agri-Industries' performance of biochemical and bio-fuels segment maintains stable, H1 2013

China's xylitol export value up but price down, Jan.-Aug. 2013

Xiwang Foodstuffs performs well in H1 2013

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

Chinese corn products Imp. & Exp., Aug. 2013

Sixth International Corn Industry Conference holds in Nanchang on Sept.

COFCO Corporation to build Guangdong Grain & Oil Industrial Park in Dongguan

Zhaoqing Coruscate's 600,000t/a starch syrup project launches in Chuzhou

Sales revenue from Star Lake Bioscience's feed additives declines by 32.62% YoY, H1 2013

Global Bio-chem suffers gross loss of USD27.63 million, H1 2013

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.

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Successive Decline of China’s Titanium Feedstock Import Volume

Guangzhou China, July 29, 2011 - China's titanium feedstock import volume continues to decline in May 2011, according to the July issue of TiO2 China Monthly Report released by CCM.

China's titanium feedstock import volume is 174,088 tonnes in May 2011, down by 19.61% compared with April 2011. The global strong demand and tight supply of titanium result in a successive downward trend from March 2011.

By May 2011, China has imported 955,623 tonnes of titanium feedstock, up 16.82% compared with the same period last year, indicating the growing demand of China’s imported titanium feedstock. However, the global titanium feedstock is in short supply now. It’s a great challenge for titanium feedstock suppliers to increase their production capabilities.

More news about the industrial trend, company dynamics, market price, and future forecast are unveiled in the latest issue of TiO2 China Monthly Report.

The following highlights are covered in the latest issue of TiO2 China Monthly Report:

- China's TiO2 trade surplus hit a record high in May 2011, with the export volume up 58.94% and the import volume up 2.37% respectively year on year.- Lluka reports ilmenite production decreases in Q2 2011, down 2% year on year.- Rio Tinto reports a 1% year-on-year decline in its TiO2 feedstock production.- Henan Billions goes public in this month and draws much attention.- Shandong Dongjia gives up restructuring CNNC Huayuan.- Kansai Paint is to build a heavy duty coating production and sales base in Chongqing, China.- Leading coating companies report great revenue growth in Q2 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.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

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Titanium Feedstock Import Volume Continues to Decline in May

July 29, 2011, CCM - China's titanium feedstock import volume continues to decline while the average import price shoots up in May 2011, as compared with last month. It is primarily due to global tight supply of titanium feedstock, according to CCM’s July issue of TiO2 China Monthly Report.

In May 2011, China's titanium feedstock import volume is 174,088 tonnes, decreasing by 19.61% from 216,541 tonnes in last month. It keeps a downward trend from March this year, as a result of global strong demand and inadequate supply.

By May, China has totally imported 955,623 tonnes of titanium feedstock in 2011, up 16.82% year on year. It indicates that the demand for imported titanium feedstock increases in China. However, titanium feedstock is in short supply globally now. Under the circumstances, many titanium feedstock suppliers have taken measures to strengthen their production capabilities.

The average import price of titanium feedstock is USD197/t in May 2011, increasing by 13.62% over last month, and 66.63% higher than that of May 2010, boosted by robust demand and tight supply.

Source: TiO2 China Monthly Report July 2011

http://www.cnchemicals.com/Newsletter/NewsletterDetail_7.html

Content of TiO2 China Monthly Report July 2011:

China's TiO2 trade surplus hit record high
Titanium feedstock import volume continues to decline in May
Kenmare expects to gain market share
Iluka's ilmenite production decreases
Rio Tinto posts weak titanium feedstock production
Henan Billions goes public on July 15

CNNC Huayuan's restructuring fizzles out again
Pangang Group sees strong output
Tronox benefits from restructuring and strong demand
Huntsman wins 2011 Low Carbon Award
South Korea to end anti-dumping duties on China's TiO2
China's coating output grows rapidly
Carpoly outstands coating producers in Asia Pacific
Kansai Paint sets up Chongqing base
Leading coating companies report great revenue growth

Price update of TiO2 and its feedstock in July 2011
TiO2 price increases in North America
DTT announces price increase effective in Sept. 2011

Editor’s Note

A climate of unrest appears in China's economy, with 6.4% increase in CPI and 1.1% decrease in PMI in June 2011.

Premier Wen Jiabao called for intensified efforts to save energy and reduce emissions at a meeting on July 19, 2011. He added that China would press ahead with reforms of resource taxes and environmental taxes, and adjust import and export duties to curb export of high energy-consuming and high-pollution products.

The shortage of titanium feedstock continues, due to output decline and great demand all over the world. In domestic market, titanium feedstock prices keep an uptrend.

China's TiO2 industry is in a booming period, enjoying global strong demand and rising prices. Henan Billions is one of the producers that have seized the opportunity. However, TiO2 prices become relatively stable in domestic market, due to weak demand in this slack season.

The coating industry in China sees great output growth this year, but its profit is seriously affected by high raw material cost.

TiO2 China Monthly Report, a monthly publication issued by CCM International on 25^th of every month, will penetrate into Chinese TiO₂ market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 industry.

Please visit http://www.cnchemicals.com for more information or contact us at econtact@cnchemicals.com

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