China's cyclamate export: volume drop in Jan.-Nov. 2013

Data from China Customs showed that the average export price of China's cyclamate witnessed an increase to USD1,932/t in the first eleven months of 2013, but at the same time, its total export volume decreased by 4.3% YoY from 24,526 tonnes in Jan.-Nov. of 2012 to 23,480 tonnes in Jan.-Nov. of 2013, according to Sweeteners China News issued by CCM in January.

The export price increase was one important reason for the export volume decrease of China's cyclamate in Jan.-Nov. 2013. In fact, price advantage is the most useful weapon for cyclamate to compete with other sweeteners. However, RMB appreciated rapidly in 2013. For example, according to the People's Bank of China, the RMB/USD exchange rate was 6.2897 on 4 Jan. 2013, but it decreased to just 6.0969 on 31 Dec. 2013. As a result, the export price of China's cyclamate also increased in the same period. Thus, overseas downstream enterprises had to pay higher price for the same quantity of China's cyclamate, which reduced their import enthusiasm.

Meanwhile, China's cyclamate began to face more competitions from other high intensity sweeteners (HIS) in overseas markets, putting pressure on China's cyclamate export. It is reported that downstream enterprises in Argentina, the second largest destination of China's cyclamate exports in 2012, preferred stevia sweetener in 2013. For example, Coca Cola launched its "green cola" containing stevia sweetener. Argentinean downstream enterprises' preference for stevia sweetener could be the reason for the significant YoY decrease in the export volume of China's cyclamate to Argentina in 2013.

It is predicted that the total export volume of China's cyclamate will decrease in 2013, and domestic cyclamate producers may have a negative prospect in 2014. Actually, it is estimated that the demand for China's cyclamate from overseas market has been falling in 2013, compared with that in 2012. Data from China Customs showed that only the demand for China's cyclamate from Europe witnessed a slight increase in Jan.-Nov. 2013, while that from other continents declined to varied extents in the same period. At the same time, the appreciation of RMB will not have a significant change in the future, which means China's cyclamate will further lose its price advantage. Based on the above negative factors, domestic cyclamate producers have to plan for their future development.

Table of Contents of Sweeteners China News 1401:

Shandong Longlive's technology center rated state-level

National standard of feed sweeteners passes expert examination

QHT cooperates with GDHA on requirement of doctors and patients for microecological health

Chenguang Biotech obtains patent certificate for stevia in Nov. 2013

CNRIFFI's stachyose (P80) rated as “national key new product”

China's sweetener industry annual overview 2013

Gross profit of Shandong crystalline glucose producers rebounds in Dec. 2013

Domestic starch sugar producers shift sales focus to export in 2013

China's HFCS: sucrose price becomes more decisive factor for profit margin decrease in 2013

Expiration of patent protection for neotame in 2013 boosts neotame production in China

First-phase of Guangdong L&P's sucralose project completed in Dec. 2013

Low sucrose price in 2013 causes contrasting net profit growth between two FOS producers

Shandong Longlive opens online flagship shop at Tmall

Shandong Futaste became the first GMP (2010 edition)-certified producer of xylitol in China

China's saccharin: combined export volume of domestic designated producers decreases in Jan.-Oct. 2013

China's cyclamate export: volume drop in Jan.-Nov. 2013

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

Sucrose price in China continues to drop since Nov. 2013

Ex-factory prices of sweeteners in China in December 2013

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

Foreign investment to offer more opportunities for China’s sweetener industry

New investments of foreign food producers in China could bring more opportunities for domestic sweetener industry in the near future, according to CCM’s December issue of Sweeteners China News.

On Nov. 22, 2012, one new production factory of Wrigley, which is located in Guangzhou Yonghe Economic & Technological Development District, was put into operation, as reported by Guangzhou Daily. This factory has the most advanced technology among all of Wrigley's factories in the world, and its investment in the first phase has reached about USD172.52 million. It is believed that candy products such as chewing gum will be produced in this factory, which will improve domestic sales volume of some sweeteners, including aspartame, acesulfame-K and many sugar alcohol products. Now the factory has already completed the first phase of the factory, and it is predicted that after finishing the second and third phases of the factory, the total capacity of Wrigley in China will increase by 60% in 2016 compared with its capacity at present.

 

Besides, a new joint-venture factory of beverage, which belongs to PepsiCo and Tingyi (Cayman Islands) Holding Corp. (Tingyi), one of the leading food and beverage companies in China, was opened in Zhengzhou City, Henan Province on Oct. 25, 2012, which means the beverage output of PepsiCo will improve in the near future. Half a month later, PepsiCo announced the opening of a new food and beverage innovation center with total investment of more than USD40 million in Shanghai. The state-of-the-art facility, which is PepsiCo's largest research and development center outside of North America, will serve as a hub of new product, packaging and equipment innovation for PepsiCo's businesses throughout Asia. The new R&D Center will significantly increase the pace of PepsiCo's innovation and put new ideas into use in Asia market, as well as strengthen the company's ability to develop products suited to the local markets.

The investments of foreign beverage and candy producers in China are based on the good prospect of China's beverage and candy market, which means the consumption volume of sweeteners in China would improve in the future. For example, PepsiCo pointed out that China and other Asian countries are key components of PepsiCo's overall plan to drive growth in emerging and developing markets globally, which could be shown from its revenue in emerging and developing markets, from USD8 billion in 2006 to USD22 billion in 2011. Meanwhile, Wrigley also expressed that it has confidence in its futural market in China, which is the second largest candy consumption market in the world. "Currently, we have more than 848 million consumers in China, and Yonghe Factory is playing an important role in our strategy in China, which can bring more powerful supports to ensure our development in China," said Martin Radvan, the global CEO of Wrigley.

It is also believed that the investments of foreign beverage and candy producers in China will benefit domestic sweetener industry. Though China has the large consumption volume of beverage and candy now, per capita consumption of sweeteners in China is far lower than the internatioanl average, which means that there is much room for improvement in the future. With consumers' rapidly enhancing health attention and the improvement of people's living standards, the demand for sweeteners will increase in the future.

 

Moreover, production technology of domestic sweetener industry may also get benefit from the investments of foreign food producers. These foreign food producers will have more and higher requirements on sweetener products, and sweetener producers in China who want to acquire more orders should improve their production technology. It is believed that more and more domestic sweetener producers are willing to improve their production technology.

Source: Sweeteners China News 1212

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

Content of Sweeteners China News 1212:

National General Standard for Starch Sugar Classification launched

Chenguang invests 1,000t/a stevia sweetener project

Import and export of Chinese sucrose in Jan.- Oct. 2012

Shandong Longlive's XOS, L-arabinose and xylose project passes review

Nanning City plans to build national sucrose reserve base

Baolingbao awarded science & technology progress prize in Shandong

Current situation and development trend of stevia sweetener in China

Baolingbao shows some solutions of some sweeteners to downstream products

Domestic HIS industry may continue to develop under governmental pressure

Overview of regulations of Ministry of Health on sweeteners in Jan.–Nov. 2012

Foreign investment to offer more opportunities for China’s sweetener industry

Overview of domestic saccharin industry in Q3 2012

Xiwang Sugar invests in real estate for low profit of starch sugar business

Net profit of Shandong Longlive may decrease in 2012

Guangdong Huahai starts its crystalline fructose project

Domestic minimum acquisition price of sugarcane may decrease in 2012/2013

AN0C relaunches beverages in supermarket

Domestic consumption of HFCS enters dull season

Ex-factory prices of Chinese sweeteners in Nov. 2012

Export overview of some sweeteners and raw materials in China, Oct. 2012

… …

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

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

Find Hot News in Sweeteners China News 1212

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

Editor's Note 1212

Editor's Note 1212

Current situation and development trend of stevia sweetener in China

Mr. Hu, Secretary-General of CFAA, indicated that China owns large output but small domestic consumption volume of stevia sweetener, and the key research direction is beverage and tabletop sweetener in the future.

Baolingbao shows downstream solutions of some functional sugars

Baolingbao showed its latest research results on downstream application of some functional sugars in FIC-Autumn 2012.

Domestic HIS industry may continue to develop under governmental pressure

Though domestic sucrose industry wished the government to limit the development of HIS, the uptrend of consumption volume of HIS may not have a significant change in the near future.

Overview of regulations of Ministry of Health on sweeteners in Jan.–Nov. 2012

It is predicted that domestic sweetener industry will enjoy more opportunities in 2013, because of the governmental regulations on sweeteners that released in Jan. – Nov. of 2012.

Foreign investment to offer more opportunities for China’s sweetener industry

New investments of foreign food producers in China could bring more opportunities for domestic sweetener industry in the near future.

Overview of domestic saccharin industry in Q3 2012

Export volume and domestic sales volume of saccharin increased in Q3 2012 over Q3 2011, but the inventory volume of saccharin was still large in China at the meantime.

Xiwang Sugar invests in real estate for low profit of starch sugar business

Because of the pressure from high cost and low profit of its corn further processing business, Xiwang Sugar begins to enter domestic real estate industry.

Net profit of Shandong Longlive may decrease in 2012

Though it was predicted that Shandong Longlive would perform well in H2 2012, net profit of the company continued to decrease in Q3 2012 compared with that in Q3 2011.

Guangdong Huahai starts its crystalline fructose project

Guangdong Huahai started the first phase of its crystalline fructose project with the capacity of 10,000t/a on Nov. 5, 2012.

Domestic minimum acquisition price of sugarcane may decrease in 2012/2013

It is predicted that domestic minimum acquisition price of sugarcane will decrease in 2012/2013, which may decrease sucrose price in China next year, and further exert a negative influence on domestic consumption of starch sugar.

AN0C relaunches beverages in supermarket

AN0C relaunched its beverages containing stevia sweetener in the supermarket in Nov. 2012.

Domestic consumption of HFCS enters dull season

In Nov. 2012, domestic consumption of HFCS has entered a dull season, which can be tracked from the low average operating rate of domestic HFCS industry.

Ex-factory prices of Chinese sweeteners in Nov. 2012

Ex-factory prices of Chinese sweeteners in Nov. 2012

Export overview of some sweeteners and raw materials in China, Oct. 2012

Export overview of some sweeteners and raw materials in China, Oct. 2012

National General Standard for Starch Sugar Classification launched

National General Standard for Starch Sugar Classification was launched.

Chenguang invests 1,000t/a stevia sweetener project

Chenguang invested in an 1,000t/a stevia sweetener project.

Import and export of Chinese sucrose in Jan.- Oct. 2012

Import and export of Chinese sucrose in Jan.- Oct. 2012

Shandong Longlive's XOS, L-arabinose and xylose project passes review

Shandong Longlive's XOS, L-arabinose and xylose project passed review.

Nanning City plans to build national sucrose reserve base

Nanning City plans to build a national sucrose reserve base.

Baolingbao awarded science & technology progress prize in Shandong

Baolingbao was awarded science & technology progress prize in Shandong. 

About CCM

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

Contact

Email: econtact@cnchemicals.com

Tel: 86-20-37616606

Fax: 86-20-37616968

Oversea market is crucial for Chinese saccharin in H1 2012

Oversea market was still crucial for Chinese saccharin from Jan. 2012 to June 2012, according to CCM’s September issue of Sweeteners China News.

This can be reflected by the latest data from China Saccharin Group (CSG), an organization under China Sugar Association managing the production and sales of saccharin in China, the percentage of the export volume of saccharin accounting for the total output grew to 83.8% in H1 2012 from 74.5% in 2011, while that of domestic sales volume dropped to 10.9% in H1 2012 from 15.8% in 2011. In detail, the export volume and domestic sales volume of Chinese saccharin were about 8,531 tonnes and 1,112 tonnes in H1 2012, increasing by 18.88% and 3.56% over the same period of 2011 respectively while the total output of Chinese saccharin was 10,170 tonnes. However, due to the large stock of Chinese saccharin at the end of June 2012, about 5,352 tonnes, it is predicted that the output of Chinese saccharin will decrease in H2 over H1 of 2012.

  

Demand increase from Asia and South America was one reason for the increasing export volume of Chinese saccharin in H1 2012, according to two main saccharin producers in China, Henan Kaifeng Xinghua Fine Chemical Factory (Kaifeng Xinghua) and Tianjin Changjie Chemicals Co., Ltd. (Tianjin Changjie). The two companies explained that the export volume of the product got improved in H1 2012 over H1 2011 as Chinese saccharin producers have actively developed customers in Asia and South America in H1 2012, which made the demand from the two regions increase during the period. For example, according to data from China Customs, Germany, Brazil and India were top three export destinations of Chinese saccharin in H1 2012, with import volumes of 967 tonnes, 734 tonnes and 584 tonnes, increasing by -5.1 %, 20.3% and 96.6% over H1 2011 respectively.

 

In fact, Chinese saccharin capacity was 19,100t/a in 2011, taking up about 70% of the global total and most saccharin made in China was exported in past years.

  

Besides, the low export price of Chinese saccharin provided the basis for the increasing export volume of Chinese saccharin in H1 2012. In fact, the export price of Chinese saccharin decreased further in H1 2012: the average export price of Chinese saccharin was USD5,272.71/t in H1 2012, decreasing by 8.23% over H1 2011. Thanks to long-term market competition and immense capacity, the export price of Chinese saccharin has always been at a low level in the world in general, which can be traced from many countries' anti-dumping measures on Chinese saccharin, including India, Thailand, etc. However, since the capacity of saccharin in these countries can't meet their demand for saccharin, they still have to import saccharin from China.

  

Significantly, according to CCM International's investigation, it is not only Chinese saccharin that enjoyed good performance abroad in H1 2012, other common high intensity sweeteners (HIS) did too, including sucralose, acesulfame-K, cyclamate, aspartame and stevia sweeteners. For example, the export volume of sucralose and acesulfame-K were about 690 tonnes and 4,600 tonnes in H1 2012, increasing by 137.6% and 11.6% over the same period of 2011 respectively. In fact, Chinese HIS industry grows rapidly in the past years, especially in overseas market, because of the increasing demand from abroad and the low export prices. Moreover, with the development of production technology and capacity expansion of Chinese HIS, Chinese HIS products will win more popularity in global market in the future.

Source: Sweeteners China News 1209

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

Content of Sweeteners China News 1209:

Xiankuo’s XOS recognized as high-tech product of Jiangsu Province

Anhui Jinhe's revenue of acesulfame-K declines by 10.04% in H1 2012

Nanning Sugar acquires tax refund of USD3.04 million

Plan of amending 5000+ items of food standards to start

Team from Wrigley visits Shandong Longlive

IMO approved as new kind of feed additive

Development strategy of HFCS industry in China in future

Oversea market is crucial for Chinese saccharin in H1 2012

Aspartame re-evaluation extended until May 2013

Enterprises of functional sugar pay attention to technology innovation

Output of crystalline fructose increases in H1 2012

QHT's total profit rises by 113.44% in H1 2012

Xinfu Pharm starts technology reformation on sucralose project

Xiwang Sugar reserves raw material in advance

GLG suffers profit loss in H1 2012 for strategy readjustment

Ex-factory prices of Chinese sweeteners in Aug. 2012

Domestic ex-factory price of acesulfame-K may decrease slightly

Domestic sorbitol industry may suffer negative effect from VC industry

Sucrose price may decline under high inventory pressure

Export overview of some sweeteners and raw materials in China, July 2012

… …

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

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_1206.html

st-lan� e Z �� �� approved as new kind of feed additive

IMO is approved as a new kind of feed additive.

About CCM

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

Contact

Email: econtact@cnchemicals.com

Tel: 86-20-37616606

Fax: 86-20-37616968

Find Hot News in Sweeteners China News 1209

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

Development strategy of HFCS industry in China in future

On the premise of overcapacity and intense competition, exploring downstream and integrating industrial resources are important for domestic HFCS industry.

Oversea market is crucial for Chinese saccharin in H1 2012

Oversea market is still crucial for Chinese saccharin in H1 2012.

Aspartame re-evaluation extended until May 2013

Timeline for full re-evaluation of aspartame from EFSA has been extended to May 2013, which won't exert much effect on China's export of the product to the EU.

Enterprises of functional sugar pay attention to technology innovation

Chinese enterprises of functional sugar have been paying more and more attention to technological innovation, which not only helps the enterprises reduce the cost of raw material, but also helps to improve the popularity of functional sugar.

Output of crystalline fructose increases in H1 2012

The output of domestic crystalline fructose keeps growing in H1 2012 thanks to the increasing demand and active promotion.

QHT's total profit rises by 113.44% in H1 2012

QHT, a company who has enjoyed revenue and total profit YoY growths of 93.43% and 113.44% in H1 2012, is making efforts to maintain the high growth in the future.

Xinfu Pharm starts technology reformation on sucralose project

On 31 July, 2012, Xinfu Pharm announces that it will carry out technology transformation on its discontinued sucralose project.

Xiwang Sugar reserves raw material in advance

Xiwang Sugar plans to save raw material (corn) cost and ensure the supply of corn in the rest of 2012 by purchasing corn in advance.

GLG suffers profit loss in H1 2012 for strategy readjustment

GLG's gross profit decreases seriously in H1 2012 for the company readjusts its development strategy in 2012.

Ex-factory prices of Chinese sweeteners in Aug. 2012

Ex-factory prices of Chinese sweeteners in Aug. 2012

Domestic ex-factory price of acesulfame-K may decrease slightly

Domestic ex-factory price of acesulfame-K has rebounded slightly in Aug. 2012, but it may decrease in the following months.

Domestic sorbitol industry may suffer negative effect from VC industry

Domestic sorbitol industry may suffer negative effect in future from the anti-monopoly suit against five major Chinese VC producers from the US.

Sucrose price may decline under high inventory pressure

Up to late July 2012, the sales-to-production ratio of domestic sucrose is 75.00% in the extraction season of 2011/2012, which may bring down its price in H2 2012 and reduce the sales volume of starch sugar.

Export overview of some sweeteners and raw materials in China, July 2012

Export overview of some sweeteners and raw materials in China, July 2012

Xiankuo’s XOS recognized as high-tech product of Jiangsu Province

Xiankuo's XOS is recognized as high-tech product of Jiangsu Province.

Anhui Jinhe's revenue of acesulfame-K declines by 10.04% in H1 2012

Anhui Jinhe's revenue of acesulfame-K declines by 10.04% in H1 2012.

Nanning Sugar acquires tax refund of USD3.04 million

Nanning Sugar acquires tax refund of USD3.04 million. 

Plan of amending 5000+ items of food standards to start

Plan of amending 5000+ items of food standards will start. 

Team from Wrigley visits Shandong Longlive

Team from Wrigley visits Shandong Longlive.

IMO approved as new kind of feed additive

IMO is approved as a new kind of feed additive.

About CCM

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

Contact

Email: econtact@cnchemicals.com

Tel: 86-20-37616606

Fax: 86-20-37616968

Profits of Chinese Saccharin Producers Decrease in 2011

From Feb. 27 to March 2, 2012, China Sugar Association (CSA), commissioned by the Ministry of Industry and Information Technology, ran a production examination on four state-mandated saccharin producers, namely Henan Kaifeng Xinghua Fine Chemical Factory (Henan Kaifeng), Tianjin North Food Co., Ltd. (Tianjin North), Tianjin Changjie Chemicals Co., Ltd. (Tianjin Changjie) and Shanghai Fortune Chemical Co., Ltd. (Shanghai Fortune). As disclosed in the examination, the profits of Chinese saccharin producers decreased obviously in 2011 due to high raw material cost and low selling price, according to CCM’s April issue of Sweeteners China News.

According to CSA's examination, the production plan of saccharin made by Chinese government was 19,000 tonnes in 2011, among which 3,200 tonnes was planned to be sold in China, and the left was planned to be exported. In fact, according to CSA, the actual output of saccharin was 18,204.34 tonnes in 2011, which completed 95.81% of the total production plan. In 2011, domestic sales volume and export volume of saccharin were 2,872.51 tonnes and 14,361.84 tonnes respectively, indicating that about 1,000 tonnes of saccharin was stocked. What's more important, CSA found that the overall profits of saccharin producers decreased obviously in 2011, and some producers even suffered loss or were on the verge of loss. 

Firstly, high raw material cost exerted pressure on saccharin producers' profit obtaining. Phthalic anhydride is a key raw material for saccharin production, and China has mainly imported it to meet the domestic demand. However, the average import price of phthalic anhydride mainly showed a rising trend in 2011 over 2010 (FIGURE1). Referred to China Customs, the average import price of phthalic anhydride was about USD1,032/t in 2011, up 23% over 2010, which increased the raw material cost of saccharin. According to a salesman of Shanghai Fortune, the company's cost rose sharply in 2011, and its average purchasing price of phthalic anhydride showed an uptrend from 2011 to now, which climbed from USD1,300/t in 2011 to USD1,800/t in March 2012. 

Unfortunately, the selling price of saccharin even fell in 2011 rather than increase with the sustained growth of phthalic anhydride's. According to CCM International's Sweeteners Database, the average ex-factory price of saccharin was lower in 2011 over 2010 (FIGURE2), which further reduced domestic saccharin producers' profits combined with the price increase of phthalic anhydride during 2011. For example, the average ex-factory price of saccharin in 2011 was USD6,006/t, with a year-on-year decrease of 7%, which may be driven by the intense competition in Chinese sweetener industry and illegal saccharin production. On one side, competition in domestic sweetener industry has become more and more intense owing to the emergence of new players and new capacities of other sweeteners, which continuously took up saccharin's market share, leading to its price drop. On the other side, saccharin has always been produced illegally in China in recent years, whose sales also reduced the demand for saccharin produced by the four manufacturers.

In Q1 2012, it is estimated that saccharin's profit may also decrease. For example, the average import price of phthalic anhydride kept on rising to USD1,632/t, while the average ex-factory price of saccharin decreased to USD5,262/t in Feb. 2012, indicating profit of saccharin may continue to decrease in Q1 2012. Though Chinese government declared that it will enhance the supervision of illegal saccharin production in 2012 and rectify the order of domestic saccharin market, the price increase of raw material, the price decrease of saccharin and the intense competition in sweetener industry will remain in the future, so saccharin's profit is likely to decrease in 2012.

Source: Sweeteners China News 1204

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

Content of Sweeteners China News 1204:

Ganzhou Julong passes acceptance inspection of medicinal stevia production

China imports 235,932 tonnes of sucrose in Jan.-Feb. 2012

Export value of Chinese stevia sweetener sees decrease in 2011

Huaxing invests in xilitol project in Harbin

Angel Yeast to construct 3,000t/d beet processing line

Sugarcane planting area may reach 67,000 ha. in Hainan Province

Profits of Chinese saccharin producers decrease in 2011

China's aspartame output stabilizes in 2011

Inadequate sucrose supply may increase demand for sweeteners in China

Zhongdu Sugar starts to build a HFCS project with capacity of 1 million t/a

Operating profit of Shandong Longlive decreases by 7.12% in 2011

Xinjiang Hengfeng may withdraw from XOS market

A stevia sweetener project to settle in Shuangfeng Economic DevelopmentZone

Profit of QHT decreases in 2011

… …

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, April 6, 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

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1019.html