Welcome to the November issue of Sweeteners China News published by CCM, a professional consulting company which has been extensively and intensively focusing on the dynamics of China's sweetener industry.
In the November issue, CCM report that two companies in China has made investments in their new production projects: One is Jiangsu Ogo, making a debut in domestic functional oligosaccharide industry; and the other is Suzhou Gaofeng, establishing new production line of HFCS and maltose syrup for Coca-Cola.
But it is predicted that the prospect of these new projects will not be as positive as the companies' expectation. Take Suzhou Gaofeng's HFCS project as a typical example. Due to the overcapacity of HFCS and the decreasing demand of carbonated beverage in China, it is predicted that the competition in the domestic HFCS industry will be more intense in the future, presenting some risks for Suzhou Gaofeng's investment.
Actually, in view of the performance of some sweetener industries in the first three quarters of 2013, those industries are believed to had difficult times in the same period. For export business, the export volume of China's erythritol witnessed a sharp YoY decrease of 37% in the first eight months of 2013. As for prices, the ex-factory price of China's FOS (powder 95%) showed a downtrend in Jan. -Sept. of 2013.
Of course, opportunities are always accompanied with challenges and vice versa. Some sweetener producers will enjoy some positive factors in the near future, especially those who use corn as raw material. Domestic corn prices are predicted to decline in 2013/2014 due to the oversupply of corn in China, though in just a small reduction range.
To be noticed, the USD/RMB exchange rate is 6.17 in this issue, 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.
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