Sweeteners China News

Welcome to the September issue of Sweeteners China News (Vol. 4 Issue 10 2014).

China’s sweeteners industries, such as sucrose, starch sugar, oligosaccharides, high intensity sweeteners (HIS), etc., showed different performances in Oct. 2014.

The domestic market price of sucrose has been on the increase since late Sept. Its sales was better than expected and it saw a large MoM reduction in industrial inventory; by the end of Aug. 2014, its imports was lower than last year. Additionally, the planting area of sugarcane was estimated to cut down, which may lead to declining sucrose yield in extraction season of 2013/2014. At present, Nanning Sugar Manufacturing Co., Ltd. and Guangxi Guitang (Group) Co., Ltd. are predicted to suffer losses in the first three quarters of 2014, and whether the performance in Q4 could increase or not is still up to the changes in its market price.

China’s starch sugar industry still remains at a doldrums overall, though the price of raw material corn fell since Sept. And the overcapacity of domestic starch sugar resulted in the intense competition among the industry; meanwhile, demand for starch sugar from overseas markets weakened. Thus, it’s predicted that China’s starch sugar industry cannot break out of this slump in the period ahead.

Oligosaccharides enjoyed a better prospect in China, but some manufacturers, such as Quantum Hi-tech (China) Biological Co., Ltd. and Baolingbao Biology Co., Ltd., hit bottleneck in sales. The market competition of China’s oligosaccharide will be fiercer by the involvement of Japan’s enterprises. Facing this situation, China’s oligosaccharide enterprises constantly widen their sales channels and improve the products reputation to positively capture the market share.

Aside from that, demand for HIS from overseas countries is on the rise. However, owing the overcapacity in China, HIS enterprises successively reduced the price to promote sales, aiming to strengthen their competitiveness. Meanwhile, products with higher security, like sucralose, stevia sweeteners, etc., are anticipated to become more popular among downstream enterprises. Hence, China’s enterprises need to seize the opportunity to expand market shares.

To be noticed,the RMB/USD exchange rate in this issue is 6.1493 (source: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.