Corn Products China News 1601(12 issues per year)

Date: 2016-02

“On 12 Jan., 201 6, the MOC initiated anti-subsidy and anti-dumping investigations into American DDGS.

In Jan. 201 6, China’s corn deep-processing enterprises are facing challenges following the end of subsidies and the export tax rebate. However, enterprises have not raised their quotations because of the sufficient market inventory. Enterprises have an incentive to pursue exports because of the sluggish domestic market and the devaluation of the RMB.

China’s farming scale of live pigs is recovering at a slow speed under the fixed policy on capacity reduction and small number of adult sows in farms but continuously rising number of pigs for slaughter. And this will affect the destocking speed of corn in China.

Affected by the rising operating rates due to the coming end of processing subsidy policy of corn and the declining price of raw materials, China鈥檚 market price of corn starch slides down once again. It is predicted that the space for corn starch demand to grow will be limited under the influences of the growing number of competing products, the arrival of the slack sales season and the passive export.

On 11 Jan., 2016, Meihua Bio and CJ Group, two giants in the amino acid industry, signed a preliminary cooperation framework agreement. If the agreement holds and the cooperation is effective,Meihua Bio can consolidate its market position and CJ Group will increase its profits and improve its public image.

On 14 Jan., COFCO Bio-chemical announced the relocation plan on its production lines of amino acid, citric acid and fuel ethanol. Since Dec. 201 5, China’s market price of soybean meal has presented an upward trend, thanks to the positive predictions of the output in the US, the devaluation of the RMB and the rising demand. However, the price is predicted to drop in the future because of the increasing supply of soybeans in the global market, the rising output in China and the falling demand from pig farms.

On 15 Jan., 201 6, the EU made final judgment of anti-circumvention on China’s homemade citric acid. Most of traders said that they are not affected greatly. But reviewing China’s development of citric acid in recent years, the anti-dumping sanctions initiated by the EU, the US, India and South Africa on China’s homemade citric acid posed a huge impact on the industry.

The OPEC implemented the strategy of oil output increase, strengthening the demand for xanthan gum in China. However, this cannot reverse the situation where China’s xanthan gum market remains depressed for long term.

In Q4 201 5, affected by the slow economic growth, the strike from substitutes and the declining price of raw materials, China’s furfural price abnormally declined in the traditional busy season.”

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