Monday, September 30, 2013

Find Hot News in Phosphorus Industry China Monthly Report 1309

Published on the 15th every month, Phosphorus Industry China Monthly Report is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of Phosphorus 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 Phosphorus Industry China Monthly Report:
International trade of phosphate chemicals in July 2013
In July, both the export volumes and export prices of primary phosphorus chemicals were generally stable or improving. However, TSP, MAP and DAP saw increased volumes but suffered from sharp price declines as the export window period caused the volume of phosphate fertilizer exports to soar, which enabled foreign importers the ability to slash prices.
Hubei Province to upgrade its phosphorus industry and tidy the tax on phosphorus ore resources
Hubei government is to deeply promote the adjustment and improvement of the industrial framework of the local fertilizer industry and to tidy the tax on its phosphorus ore resources.
Global phosphate fertilizer market folded by dark clouds as Indian Rupee continues depreciating and downstream demand remains sluggish
China's phosphate fertilizer exports are suffering from the Indian Rupee's further depreciation and the severe oversupply in the global phosphate fertilizer industry.
Price monitoring of some phosphate chemicals in Aug. 2013
In Aug., the price of phosphorus ore remained stable. The price of yellow phosphorus and downstream fine phosphorus chemicals such as phosphoric acid and STPP witnessed slight increases.
Market review of prime phosphate chemicals in Aug. 2013
In Aug., the supply and demand for domestic yellow phosphorus remained stable while the domestic phosphorus ore and phosphate fertilizer industries are faced with different levels of oversupply.
Tianyuan and Annada to co-found a firm to produce iron phosphate
Sinosteel Anhui Tianyuan Technology Co., Ltd. is to set up a iron phosphate company named Anhui Annada Titanium Industry Co., Ltd. with Tongling Nayuan Material Technology Co., Ltd.
Jinning Fine Phosphorus Chemical Industrial Base approved as Late-model Industrialization Demonstration Base
On July 25, Jinning Fine Phosphorus Chemical Industrial Demonstration Base has been approved as the Yunnan Province Late-model Industrialization Demonstration Base by Yunnan Provincial Industry and Information Technology Commission.
Blue Sky Chemical to develop capacitor grade phosphoric acid and red phosphorus flame retardant
On Aug. 29, a Ya'an city-based projects involving the construction of production facilities for capacitor grade phosphoric acid and microcapsulated red phosphorus flame retardant were added to the 2013 Key Projects List of Sichuan Province.
MIIT begins accepting applications for enterprises to become qualified yellow phosphorus enterprises
On Aug. 12, the Ministry of Industry and Information Technology of People's Republic of China (MIIT) began accepting applications for enterprises to become qualified yellow phosphorus enterprises. Applicants will need to meet the Entry Criteria for Yellow Phosphorus, which aims towards improving energy conservation, promoting clean production and obsoleting backwards technologies and methods in China's yellow phosphorus industry.
Hubei Xingfa and Wengfu Group affirmed as cleaner production demonstration enterprises
On Aug. 14, 2013, Hubei Xingfa Chemicals Group Co., Ltd. and Wengfu Group Co., Ltd were preliminarily affirmed as cleaner production demonstration enterprises by the Ministry of Industry and Information Technology of People's Republic of China (MIIT).
Domestic phosphate fertilizer manufacturers call for more flexible export policy
China's phosphate fertilizer manufacturers have complaints about the current export tariff levying model and are calling for either a reduced export tariff rate or a more flexible export window period.
Fanjie Tech achieves a breakthrough in fully utilizing phosphogypsum
Nanchang Fanjie Technology Co., Ltd. achieved a breakthrough in phosphogypsum utilization by directly decomposing phosphogypsum to produce high purity gypsum by creating a direct breakdown method.
China's sulphur market is in deep trouble primarily due to the sluggish downstream phosphate fertilizer industry
Faced with tremendous pressure from the downstream phosphate fertilizer industry, China's sulphur market has become mired by the slump in sulphur market prices. Meanwhile the sulphur inventory in various ports has remained high.
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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 1309

Published on the 5th 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 Titanium Dioxide China Monthly Report 1309

Published on the 25th every month, Titanium Dioxide China Monthly Report  is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of Titanium Dioxide market dynamics, analyze the market data and trends. TiO2 China Monthly Report will provide intelligence of Chinese TiO2 industry, including supply/demand, company dynamics, raw material supply, etc, and the latest policies and technological progress to facilitate your search for commercial opportunities in this promising market.

Following are headline news of the Titanium Dioxide China Monthly Report:
Increasing auto sales volume and customers' color predilection are expected to slightly boost the TiO2 demand
The production and sales volume of domestic automobile industry both saw double-digit YoY growth during Jan.–Aug. 2013. The growth in the automobile industry will help boost the demand for TiO2.
Domestic TiO2 price kept relatively stable from mid-Aug. to mid-Sept.
The domestic TiO2 prices were relatively stable from mid-Aug. to mid-Sept. Any future price increases may depend on a supply reduction if the downstream demand continues to weaken.
Nippon Paint (China) leagues with Gold Mantis to enter the construction decoration industry
Competition in the paint & coating industry is fierce. Therefore, vertical cooperation agreements such as the cooperation between Gold Mantis and Nippon Paint (China) is a wise strategy to further the common interests of both parties.
Lomon Corporation listed among 2013 Top 500 Chinese Private Manufacturing Enterprises
Lomon Corporation was selected as one of the 2013 Top 500 Chinese Private Manufacturing Enterprises and also as one of the 2013 Top Chinese Chemical Enterprises. These two achievements demonstrate Lomon Corporation's competitiveness among private manufacturing enterprises and in the domestic chemistry industry.
Total titanium feedstock supply volume increased slightly while average import price fell sharply in July
The domestic supply of titanium feedstock in July increased by 2.35% MoM, while the average import price fell sharply by 22.65% MoM. The decline proves that the attempts by titanium feedstock producers to raise prices during June have failed.
Import volume kept growth momentum while export volume reversed with double-digit MoM growth
During Jan. 2013–July 2013, China imported 116,582 tonnes and exported 240,128 tonnes of TiO2. Therefore, the Jan. 2013–July 2013 turnover for TiO2 was 356,710 tonnes, a decrease of 7.70% compared to 386,470 tonnes in the same epriod of 2012, mainly due to the weak demand of downstream industries.
China produced about 925 thousand tonnes of TiO2 in H1 2013, representing a YoY fall of 1.28%
China produced approximately 925 thousand tonnes of TiO2 in H1 2013, representing a YoY fall of 1.28%. The top five producers' market share increased by 6.22% YoY to 37.57%.
Listed TiO2 companies suffer average gross margin rate and total revenue fall in H1 2013
The five listed TiO2 companies' average gross margin from their TiO2 products fell by 10.10% in H1 2013. Also, their total revenue declined by 16.94% in H1 2013 compared with that in H1 2012.
Henan Billions acquires first prize in sci-tech achievement as reward for its study on SCR TiO2
The niche SCR TiO2 market in China has drawn many domestic TiO2 giants including Henan Billions who recently acquired the first prize of Science and Technology Achievement Award bestowed by the Department of Industry and Information Technology of Henan Province for its efforts on the study of SCR TiO2. However, the competition in the SCR TiO2 market might intensify with competitors' pouring into the market.
Sichuan Lomon to break off the cooperation with WTR for jointly developing a world-class ilmenite project
Sichuan Lomon has decided to break off the cooperation with WTR, mainly due to its recent fundraising difficulties. The cooperation with WTR was regarded as a crucial step for Sichuan Lomon's expansion as it was expected to provide Sichuan Lomon with sufficient titanium feedstock resources.

Sunday, September 29, 2013

China’s BCAAs industry keeps increasing in production and demand

As one kind of amino acids with high added value, BCAAs (Branched-Chain Amino Acids) consist of three types of amino acids, namely leucine, isoleucine and valine. BCAAs are widely used as the dietary supplement among the people involved in bodybuilding and athletics, mainly for accelerating human’s muscle anabolism.

In CCM’s latest market report, Market Research of BCAAs in China, we can see the general production situation of China's BCAAs industry during 2010–2012. As a large producer of amino acids worldwide, China's BCAAs total output in 2012 reached about 4,865 tonnes, accounting for more than two thirds of the global output. At the same time, there are many new projects and expansion projects for BCAAs under construction in China.

In addition to reviewing the production situation of China’s BCAAs industry, CCM’s report also focuses on four parts, namely market prices, demand situation, production technology, and analysis of domestic key producers.

Through the report, we can get both the current market prices of valine, leucine, and isoleucine during Jan.–June 2013. The report also reveals the historical market prices of these three products during 2009–2012.

As for the demand situation, the domestic demand for BCAAs is relatively small at present, though China has been engaged in BCAAs business for years. In fact, most of the BCAAs produced in China are exported to developed countries, especially those in Europe and America. In the report, CCM will give a detailed introduction to the demand situation of China’s BCAAs during 2010–2012, particularly the consumption in the food industry (e.g. dietary supplement, functional food, drinks and oral drugs, etc.) and non-food industry, like pharmaceutical injection, also a forecast on demand from 2013 to 2017 is provided.

However, compared with those imported BCAAs from overseas markets, China’s BCAAs are in an inferior position, due to China’s BCAAs are still unsteady in quality. But we can see that the production technology of China’s BCAAs has been keeping improved in recent years. According to CCM’s report, at present, there are many BCAAs producers in China, such as Shine Star (Hubei) Biological Engineering Co., Ltd., Meihua Holdings Group Co., Ltd., Yichang Sanxia Pharmaceutical Co., Ltd., Fufeng Group Co., Ltd., etc. These producers widely utilize fermentation method in the production of isoleucine and valine, while extraction method is playing a dominant role in the production of leucine. To help readers better understand the competitiveness of these producers, CCM will also introduce their financial situation and analyze their production costs of BCAAs.

For more information about Market Research of BCAAs in China, please visit: http://www.cnchemicals.com/ResearchCenter/Report/2310/Market-Research-of-BCAAs-in-China-Edition(2)

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

China produced about 925 thousand tonnes of TiO2 in H1 2013, representing a YoY fall of 1.28%

According to CCM's investigation, China produced a total of approximately 925 thousand tonnes of TiO2 in H1 2013, a YoY fall of 1.28% compared with 937 thousand tonnes in H1 2012. In H1 2013, the domestic TiO2 price declined by more than 12%, due to the weak export conditions and the sluggish downstream demand. This caused some producers to reduce or halt production.
 
At the end of June 2013, TiO2 producers were still burdened by high inventory levels. However, the sluggish market condition has provided giant TiO2 producers opportunities to expand their market share through low price strategies. This has forced some small producers out of the market, which further accelerates the integration within the industry.
 
At the same time, market share of the top five domestic TiO2 producers was 37.57% in H1 2013, a 6.22% increase from H1 2012. This is primarily due to the launching of Sichuan Lomon's new project and the integration of CNNC Titanium, which have correspondingly raised their TiO2 capacities.
 
The top TiO2 producers have consolidated their places in the industry by increasing their output during H1 2013. Sichuan Lomon ranked first with an output of more than 100 thousand tonnes in H1 2013, compared with the output of 86 thousand tonnes in H1 2012. Sichuan Lomon acquired 300,000t/a of new TiO2 production capacity after its Xiangyang project went into operation in the beginning of 2013. The Xiangyang project largely increased Sichuan Lomon's TiO2 output in H1 2013. Shandong Dongjia ranked second with an output of approximately 75 thousand tonnes, a YoY increase of about 10%. CNNC Titanium leapfrogged Henan Billions and ranked third, with an output of 63 thousand tonnes after integrating the assets of CNNC Hua Yuan Titanium Dioxide Co., Ltd. and Anhui Jinxing Titanium Co., Ltd. Henan Billions ranked fourth with a TiO2 output of 57.8 thousand tonnes, a YoY fall of 3.83%. Pangang Group was fifth, having produced 41.7 thousand tonnes in H1 2013. 
 
Meanwhile, under the weak market conditions in H1 2013, seven small TiO2 producers have halted their facilities. These seven small producers have a combined total TiO2 capacity of approximately 126 thousand tonnes.


Editor's notes
Headlines of this issue
Industrial Information
Import volume kept growth momentum while export volume reversed with double-digit MoM growth
Total titanium feedstock supply volume increased slightly while average import price fell sharply in July
Domestic TiO2 price kept relatively stable from mid-Aug. to mid-Sept.
Company dynamics
Henan Billions acquires first prize in sci-tech achievement as reward for its study on SCR TiO2
Listed TiO2 companies suffer average gross margin rate and total revenue fall in H1 2013
China produced about 925 thousand tonnes of TiO2 in H1 2013, representing a YoY fall of 1.28%
Lomon Corporation listed among 2013 Top 500 Chinese Private Manufacturing Enterprises
Upstream
Sichuan Lomon to break off the cooperation with WTR for jointly developing a world-class ilmenite project
Downstream
Nippon Paint (China) leagues with Gold Mantis to enter the construction decoration industry
Increasing auto sales volume and customers' color predilection are expected to slightly boost the TiO2 demand

Titanium Dioxide China Monthly Report, issued by CCM on 25th, is mainly comprised of five columns of news and reports related to TiO2 market, including “Supply & Demand”, “Company Dynamics”, “Upstream”, “Downstream” and “Price Update”. You can find out more business opportunities through the latest and helpful information provided in the report.

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

Thursday, September 26, 2013

Sichuan Hebang to construct 50,000t/a glyphosate production project

Sichuan Hebang Co. Ltd. (Sichuan Hebang), a listed chemical company in China with soda ash and ammonium chloride as its main products, claimed that it planned to construct a 50,000t/a glyphosate production project with a total budget of USD81.81 million (RMB501 million). Besides, at present Sichuan Hebang owns the production equipment and production technique which equals to 50,000t/a glyphosate production capacity. Notably, this project's start time is uncertain now due to the uncertainty to obtain the glyphosate production and operating license, according to Glyphosate China Monthly Report issued by CCM in September.
 
According to the investment announcement released by Sichuan Hebang on 10 Sept. 2013, Sichuan Hebang planned to construct the 50,000t/a glyphosate production project by self-finance, and the project construction time is planned to be one year. When this project is completed, Sichuan Hebang expects the total revenue and total profit of this project to reach USD326.60 million (RMB2 billion) and USD45.07 million (RMB276 million) respectively, according to the current glyphosate price in China.
 
The announcement also revealed that the goal of this project was to enrich Sichuan Hebang's product variety and create a circular economy industrial chain, which would lead to huge investment return. Sichuan Hebang's main products are soda ash and ammonium chloride, each of whose current capacity is 800,000t/a. The revenue from soda products makes up about 95% of the total in 2012 and 93% in H1 2013 respectively. 
 
In order to complete this project, Sichuan Hebang has purchased the production equipment and production technique which equals to 50,000t/a glyphosate production capacity from its joint stock company—Sichuan Shuncheng Chemical Co. Ltd. (Sichuan Shuncheng) with the price of USD12.97 million (RMB79.41 million) on 7 Sept. 2013. But the equipment hasn't been installed. The purpose of purchasing glyphosate related asset is to achieve benefit maximization. Mr. Mo, the board secretary of Sichuan Hebang, stated that Sichuan Hebang only owns 49% equity of Sichuan Shuncheng and does not hold controlling interest, which prevents Sichuan Hebang from achieving benefit maximization.

There are two main obstacles for Sichuan Hebang to accomplish its glyphosate project.
 
One is that Sichuan Hebang has no glyphosate production and operating license at present. Sichuan Hebang's business includes production and sales of soda ash, ammonium chloride, ammonia, calcium carbonate, etc., but not glyphosate. Whether Sichuan Hebang can obtain glyphosate production and operating license is uncertain now. Mo stated that Sichuan Hebang's glyphosate production project needs the approval from the National Development and Reform Commission, People's Republic of China and the Ministry of Environmental Protection, People's Republic of China, according to current glyphosate related policies and regulations. But whether Sichuan Hebang can obtain the approval from the above two departments is uncertain.
 
The other obstacle is fund shortage. According to 2013 semi-annual report of Sichuan Hebang, Sichuan Hebang has huge fund, with its cash and cash equivalents up to USD79.85 million (RMB489 million) in total by the end of H1 2013. Sichuan Hebang has been constructing three big projects, including 6 turn to be 9 project (namely the project of 600,000t/a soda co-production capacity transforms to 900,000t/a soda co-production capacity), phosphate development project and Wujun glass project, all of which are by self-finance. At present, these three projects have been invested a little more than 30% of total investment fund, which means that these three project still need the remaining total investment of about USD381.09 million (2.33 billion). Undoubtedly, according to its current fund situation, it's very hard for Sichuan Hebang to invest in the glyphosate project. 
 
However, Sichuan Hebang is still trying its best to solve the two main obstacles.
 
As for the glyphosate production and operating license, Mo stated that Sichuan Hebang will actively apply to the local related government departments. Furthermore, if Sichuan Hebang fails to apply for glyphosate production and operating license, it may purchase a small glyphosate manufacturer which has glyphosate production and operating license in Sichuan Province.
 
As for the fund shortage, Sichuan Hebang can solve it by many ways, such as equity pledge financing, bank loans, directional stock issuance financing, etc. According to the announcement released by Sichuan Hebang on 7 Sept. 2013, Sichuan Hebang Investment Group Co., Ltd. (Sichuan Hebang Investment), Sichuan Hebang's controlling shareholder, has made a deal with Hong Yuan Securities Co., Ltd. (Hong Yuan Securities) that Sichuan Hebang Investment pledges 39.1 million shares of Sichuan Hebang to Hong Yuan Securities for financing. Although Sichuan Hebang Investment didn't reveal the equity pledge financing amount, it may be more than USD81.65 million (RMB500 million). According to Sichuan Hebang's average stock price in H1 2013, the value of 39.1 million shares is about USD86.26 million (RMB528.25 million). It's estimated that the fund from Sichuan Hebang Investment's equity pledge financing will be invested in Sichuan Hebang's glyphosate project.

If the two main obstacles are solved successfully, Sichuan Hebang's glyphosate project is expected to be launched by the end of 2014 or at the beginning of 2015. Whether glyphosate market at that time is still thriving or not is uncertain, so glyphosate project will be a high risk investment project for Sichuan Hebang.
Zhejiang Wynca successfully turns loss into gain in H1 2013 YoY
Nantong Jiangshan's operating profit increases by 4,113.88% in H1 2013
Anhui Huaxing's revenue increases by 38.08% in H1 2013
Jiangsu Yangnong achieves strong profits largely due to its glyphosate business in H1 2013
Sichuan Hebang to construct 50,000t/a glyphosate production project
Operating performance comparison among Zhejiang Wynca, Nantong Jiangshan and Anhui Huaxing in H1 2013
Glyphosate becomes operating performance booster of Chinese pesticide companies
Six glyphosate registrations in Aug. 2013
Glyphosate technical price increases moderately in Sept. 2013
Export volume of glyphosate technical decreases by 5.63% in July 2013 MoM


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


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

State Development & Investment Corporation (SDIC), a state-owned investment holding company directly under the central government, announced on its official website that its holding company named SDIC CGOG Futures Co., Ltd, became a member of China Starch Industry Association (CSIA) in July 2013, in order to assist Dalian Commodity Exchange (DCE), one of the four futures exchanges in China, to promote the listing of high fructose corn syrup (HFCS) and corn starch as futures. SDIC expressed that HFCS and corn starch were the two key varieties under DCE's current research to become futures. If HFCS and corn starch can become futures, it will bring more opportunities than challenges to domestic producers of these two commodities.

HFCS and corn starch becoming futures will have a positive effect on setting the benchmark prices of these two products in China. At present, China has no authoritative benchmark prices of HFCS and corn starch, which means that prices of these two products vary with producers. Because of the intense competition in these two industries, most domestic HFCS and corn starch producers always apply the "low-price strategy", even some producers continuously decline their products' prices, weakening the bargaining power of domestic HFCS and corn starch producers. Under this situation, the market price of HFCS and corn starch in China are irregular at present. The futures price of HFCS and corn starch can be used as their authoritative benchmark prices, which is believed to strengthen the bargaining power of domestic HFCS and corn starch producers.

Besides, according to Zhou Bo, a member of DCE, HFCS and corn starch becoming futures will be beneficial to domestic HFCS and corn starch producers and domestic downstream enterprises. The hedging function of futures can ensure both HFCS and corn starch producers and domestic downstream companies lower risks and more profits. Domestic producers can adjust their production plans and sales strategies according to the futures prices, and downstream companies can adjust their purchase volumes at the same time.
For domestic HFCS and corn starch producers, if they want to take part in futures exchange, they need to acquire relevant qualification after the listing of HFCS and corn starch are approved. It is worth mentioning that the raw material supply and quality assurance period jointly determine that the range of production and sales is not large. In addition, most HFCS producers in China follow the "factory direct sales" method. As a result, to acquire the futures checking and acceptance qualification will be a priority for domestic HFCS producers to participate in futures trading.

Moreover, the companies which want to take part in the futures trading of HFCS and corn starch in the future will need relevant futures researcher. An excellent futures researcher will be helpful to improve their anti-risk capability.

If HFCS and corn starch can become futures, it is believed that these two industries will further develop. For one thing, to be futures, more relevant research organizations will bring more information about not only the domestic market but also overseas market, which may affect the futures prices. At present the channel through which producers gather the information mentioned above are confined to a few organizations only, but the situation will be changed after the futures are approved. Also becoming futures will improve the concentration ration of the industries. It is obvious that large producers will more easily acquire relevant qualifications to enter the futures market than the smaller ones, thus, the smaller ones will face more risks than the larger ones. Finally, more small producers will withdraw from the market or be acquired by large ones, and the concentration ration of the industries will increase.

Source: Corn Products China News issued by CCM in September

Table of Contents of Corn Products China News 1309:
China's corn import may incease to 20-30 million tonnes
Chinese corn products Imp. & Exp. in July 2013
China's citric acid export volume up but value down, Jan.-July 2013
Price update of corn products in Sept. 2013
Ex-works price of DDGS surges in Aug. 2013
Fufeng Group performs well in H1 2013
Meihua Group's net profit down 22% YoY in H1 2013
Sales revenue of Baolingbao declines by 20.88% in H1 2013
COFCO Biochemical's net profit decreases by 48.27% in H1 2013
Longlive Bio-technology performs in expectation in H1 2013
HFCS and corn starch expected to get listed as futures in China
Feed industry undergoes a downtrend in H1 2013


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