Sweeteners China News

Welcome to the August issue of Sweeteners China News (Vol. 4 Issue 8 2014) published by CCM. In this issue, a futures expert will conduct an in-depth analysis on domestic corn starch futures. Due to corn starch boasting futures-like characteristics, starch deep-processing enterprises could avoid risks by futures hedging. 

Apart from raw materials, this issue will attach great importance to sucrose, starch sugar, high intensity sweeteners (HIS) and oligosaccharides, etc.

By H1 2014, the sucrose and starch sugar industry were in the doldrums all the way. Due to the oversupply of sucrose in China and the impact of imported raw sugar with low price, sucrose price was hard to been pushed up in China, which brought forth continuous losses on sugar enterprises. Low sucrose prices in China weakened the price advantage of China's starch sugar products. In addition, in H1 2014, domestic corn and corn starch saw an upsurge in prices. Therefore, domestic starch sugar enterprises suffered huge pressure from sucrose’s falling price and raw materials’ price rise.

In H1 2014, domestic acesulfame-k and erythritol industries witnessed a favorable turn, so Anhui Jinhe Industrial Co., Ltd. (Anhui Jinhe) and Baolingbao Biology Co., Ltd. (Baolingbao) are beneficiaries. However, China’s cyclamate suffered a YoY decrease in both export volume and the average export price. 

Oligosaccharide was confronted with a brand-new opportunity in feed industry. On 24 July, 2014，the Ministry of Agriculture of the People's Republic of China approved an extensive application for isomalto oligosaccharide in piglet feed additive.

To be noticed, the RMB/USD exchange rate in this issue is 6.1681 :The People’s Bank of China),and all the prices mentioned in this newsletter include the VAT unless otherwise specified. If there are any specific topics you would like us to cover or any subjects you would like us to investigate in more details, please contact us by +86-20-3761 6606, or econtact@cnchemicals.com.