Fibers China Quarterly Report

Welcome to Fibers China Quarterly Newsletter Q2 2024

Market Analysis:

The General Administration of Customs of the People's Republic of China (GACC) issued a notice stating that imports of Russian Jerusalem artichokes that meet the following relevant requirements are allowed. BLB was mainly affected by the sugar alcohol business in functional sugars and higher raw material costs, resulting in a decline in both revenue and profits in 2023.

Company Dynamics:

• Bailong Chuangyuan plans to launch a project for key technology research and industrialisation for the physical-enzymatic production to build 5,000 t/a resistant dextrin.
• Anhui Jinhe plans to invest USD2.27 million in the construction of fructo-oligosaccharides (FOS) and galacto-oligosaccharides production lines.
• Henan Yuanxiang has completed the construction of 10,000 t/a of liquid FOS, 3,000 t/a of Jerusalem artichoke juice and 1,000 t/a of fruit juice concentrate.
• Yierbaite plans to build a production line of 7,500 t/a powdered fructo-oligosaccharides(P95S), 6,000 t/a pulp fructo-oligosaccharides(G55L), 2,000 t/a pulp galacto-oligosaccharides (57L), etc.
• Jiangsu Xianzhuo plans to build a 1,000 t/a isomalto-oligosaccharide and 1,000 t/a isomaltitol production line.
• DSM Andeli plans to build 1,000 t/a pectin and 3,000 t/a compound food gum production line.
• Yantai Bisheng intends to build an 300 t/a α-cyclodextrin production line and a 300 t/a γ-cyclodextrin production line.

Price:

In Q2 2024, the price of resistant dextrin and polydextrose kept stable relatively. The price of fructo-oligosaccharides and galacto-oligosaccharides in June experienced a slight increase, with a rise of 0.40% and 0.36% MOM for the arrival of summer, which has led to an increased demand for functional beverages and, consequently, a higher demand downstream for oligofructose and galactooligosaccharides.

In this quarterly report, all amounts in USD are converted using the USD/CNY exchange rate USD1.00=CNY7.1265 (Source: The People's Bank of China, 1 July, 2024). Unless otherwise stated, all prices involved in this report include VAT.