Summary :
Starch prices hit 10-month highs (+3.5-5.2% MoM). EU tariffs cut erythritol exports 50%, while ASEAN demand drove Xingtai’s sorbitol shipments up 93%. COFCO and Xiwang expanded green processing (45% lower CO₂) and EU market share. Enzyme tech cut costs 33.5%, boosting functional products (28.5% share by 2030). Stricter COD limits (50mg/L) and trade probes pressure SMEs.
I. Market Prices & Supply-Demand Dynamics
Starch Prices Continue Climbing
Spot prices (June 8): Shandong corn starch ¥2,800-2,880/t; Hebei ¥2,900-2,940/t; Jilin ¥2,680-2,750/t; Heilongjiang ¥2,580-2,640/t. Prices rose 3.5%-5.2% MoM, marking 10-month highs.
Sugar Alcohol Markets Diverge
Erythritol: EU antidumping duties (156.7% on Shandong Sanyuan, 34.4% on Baolingbao) slashed May U.S. exports from Shandong to an 8-year low (–50% YoY vs 2024, –90% vs 2021 peak). Domestic demand grew as Sanyuan launched allulose production, diversifying portfolios.
Sorbitol/Maltitol: Exports remained stable, with Xingtai’s Jan-Jun sugar alcohol exports up 93% YoY. Soaring ASEAN demand accelerated clearance via "immediate inspection" models.
II. Corporate Updates
COFCO
Commissioned a 600k-ton/year corn processing plant in Gongzhuling (Jilin), integrating fresh corn and deep processing. Launched “Silver-Futures-Insurance” project covering 23,333 hectares via “order + insurance + futures + credit” model. June 19 AGM approved annual report emphasizing global supply chain optimization.
Xiwang Sugar
Passed FSSC22000 audits (crystalline fructose, maltodextrin) in May, strengthening international compliance. Q2 sales prioritized European expansion and zero inventory, leveraging low antidumping rates (34.4%) to gain EU share.
Emerging Players
Shandong Lianmeng Chemical expanded global sugar alcohol leadership, adding >200k tons capacity by 2025 (functional alcohols to reach 60% share). Sanyuan Bio accelerated allulose scale-up and tagatose R&D to offset EU erythritol gaps.
III. Trade & Policy Impacts
Export Restructuring
Starch: 2025 exports forecast at >3M tons, ASEAN share up to 43%; high-end modified starch prices hit $860/t.
Sugar Alcohols: EU erythritol exports fell due to tariffs, but Belt & Road nations rose to 58% share, with Vietnam/India orders surging.
Policy Support
MARA approved 56 new fresh corn varieties in 2025 for high-value sugar alcohol feedstocks. Shandong offered low-interest loans (e.g., to Jin Neng Corn) for green tech upgrades (CO₂/t down 45% vs 2020).
IV. Tech & Industrial Trends
Production Innovations
Enzymatic conversion adoption >89%; water use at top firms fell to 1.8m³/t, steam to 2.1GJ/t – costs down 33.5% vs conventional methods. Tsinghua’s biosynthetic tech cut allulose costs to 68% of traditional processes; mass production expected in 2025.
Product Premiumization
Specialty starch (resistant/slow-release) share: 12.3% (2024) → 28.5% (2030), gross margin 35%-42%. Functional sugar alcohols expanded in medical/pet food, with market size forecast at ¥26B by 2030.
V. Risks & Challenges
Input Volatility: Corn prices lifted starch production costs to 65%-70% of total; firms boosted futures hedging to 45%.
Trade Barriers: U.S. launched dual investigation into erythritol, pressuring exporters (e.g., Sanyuan’s Jan-May U.S. revenue share: 20.18%).
Environmental Compliance: Stricter COD limits (50mg/L per GB 25461-2025) forced 14.6% industry capex toward eco-upgrades, squeezing SMEs.
Data sources: General Administration of Customs, Ministry of Agriculture and Rural Affairs, CCM.
More information can be found at CCM Corn Products China Monthly Report.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.