Welcome to Acidity Regulator Quarterly China Report–Q1 2021.
Policy:
China's 2021 tariff schedule has come into force starting from 1 Jan., 2021, and import tariffs on certain products have been lowered.
Company and market dynamics:
Jindan Technology's revenues from lactic acid and lactate increased in 2020, reflecting the increasing demand for lactic acid in China. More enterprises kick-start their lactic acid production projects. Specifically, Qiyu Biological's and Xinghan Biotechnology's L-lactic acid projects have been under construction; Beijing Jingliang's L-lactic acid project is expected to start construction at the end of April.
In terms of citric acid, Seven Stars' and Weifang Ensign's citric acid projects have been in smooth progress. Driven by price hikes of raw material, citric acid prices enjoyed sharp increases in Q1, making enterprises return to profitability.
Exports:
In 2020, domestic export volume and value of citric acid declined due to COVID-19. As the global economy picks up, the exports of citric acid are expected to recover to the previous level before the pandemic.
The USD/CNY exchange rate in this period is 6.5584, sourced from the People's Bank of China on 1 April, 2021. Except for special instructions, all prices involved in this period include VAT.

