2,660 Tonnes Aspartame were Exported from China to Europe

Date: 2015-09-08

“Potential risks in China’s aspartame market

Since January 2015, China’s aspartame industry has developed steadily. Specifically, the ex-works price only recorded a slight decline of 2% (vs. 9% in the same period of 2014) from USD12,475/t in January to USD12,183/t in July.
This can be attributed to:

1.Eased competition pressure. In September 2014, the US-based Nutrasweet Company, capacity given at 10,000 t/a (around 22% of the global figure), announced the withdrawal from the aspartame business. This indicated that the Chinese aspartame enterprises would have to only face the strong competition with Ajinomoto Co. Inc. (in Japan), capacity given at 10,000 t/a.

2.Preferential government policy. During 1 Jan.-31 Dec., 2015, the export tax rebate is 13%, up from the original 9%. This contributes to improving the company competitiveness in the globe.

In H2 2015, China’s aspartame industry will continue going on stably. Though the market is still favoured by the market conditions and the government policy, the domestic aspartame producers have no plan to largely reduce the price to grasp the sales. For instance, the quoted price from SinoSweet Co., Ltd. maintains at about USD12,000/t. Probably for years the enterprises have expanded the markets and obtained steady orders, which persuade them to keep stable in the short run.  

However, there are potential risks in China’s aspartame industry.

On 30 May, 2015, the EU initiated the anti-dumping investigation on the aspartame from China. The preliminary determination is expected to be made in February 2016. Accordingly, the EU plays an important role in China’s aspartame export. In 2014, 2,660 tonnes were exported to this destination, 18% of national figure (vs.17% in 2013 ). If the decision is made to levy anti-dumping duty on the China-made aspartame, the domestic enterprises will then encounter great losses in the sales.

Many foreign food and beverage enterprises announced to substitute aspartame with other sweeteners. For instance, PepsiCo Inc. launched a new product, Diet Pepsi onto the US on 10 Aug., in which aspartame is replaced by an acesulfame-K – sucralose sweetener mix. This formula is only applicable to the US.

Other world’s well-known food enterprises such as General Mills Inc. (in France) and Chobani, LLC (in the US) also apply other sweeteners like stevia sweeteners and mogroside mix to substitute aspartame. This indicates that the shares of aspartame will be gradually narrowed down.”

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