The Overcapacity Faces Chinese Sucralose Market with Fierce Competition in 2015

Date: 2015-08-09

“In April 2015, the sucrose prices at home and abroad recorded growth. However, the period for price recovery abroad distinctly lagged behind that in domestic market.
In 2015, Chinese aspartame industry will be supported by the favorable factors at home and abroad for development. Based on the status quo, each enterprise has made applicable plans. It is predicted that the industry concentration will be further improved thisyear.

The overcapacity faces Chinese sucralose market with fierce competition in 2015, which then causes sharp decreases in ex-works price. In order to stabilize the price, enterprises with intention to expand capacity plan to suspend the expansion projects. However, it is predicted that the intense competition will continue this year, along with constantly declining price.

In 2014, Guilin Layn achieved large rises in both revenue and net profit, which can be ascribed to the increased revenues from the businesses of plant extraction and BT project. However, the enterprise will face the co-existance of opportunities and challenges in its sustainable and rapid development.

On 1 April, 2015, QHT released 6 state-level FOS RMs at the FIC 2015. This fills the gap of RMs in the globe, expected to be world-level FOS RMs and promote the downstream application.

In 2014, Guangxi Guitang and COFCO Tunhe had declines in revenue, due to the sluggish sucrose industry in China. In 2015, the industry recovery is expected to drive up the sugar makers’ performance. Meanwhile, these 2 enterprises will take measures to continue developing sugar making business.

Influenced by the increased price of raw material and the factory relocation, Global Sweeteners recorded loss in 2014. In 2015, the challenges faced will still outweigh opportunities.

In March 2015, the ex-works price of sorbitol recorded a MoM increase in China, due to the rise in the price of raw material. It is expected that the price will continue the upturn in a short term.

In January-February 2015, China’s exports of cyclamate increased YoY, however slight decreases in price. It is expected that the exports this year will maintain stable and even show slight falls.

In January-February 2015, the total export volume and dollar value of 3 syrup categories with independent HS codes from China recorded a YoY increase. However, differences showed in each export by volume.”

“In early April, the FIC 2015 was held in the National Exhibition and Convention Center (Shanghai). During this, QHT released 6 state-level FOS reference materials. This marks a milestone in this segment, as it fills the gap of reference material in the globe and is a solution of the big differences and disputes about tests carried out by each country, enterprise and even personnel. Hopefully, it will be beneficial to the expansion in downstream application.

Meanwhile, CCM found that other segments in the industry also took measures to cope with varied status quos.

– Sucralose: The overcapacity and fierce competition continue in this year, along with constantly declining price. In order to stabilize the market, enterprises with the intention to expand capacity, such as JK Sucralose, planned to suspend the projects.

– Aspartame: The increased export rebates and the withdrawal of the US-based NutraSweet will boost its development. SinoSweet, the leader in this sector intended to seize the opportunities to focus on this business and grasp more shares in the globe.

It is also the time slot for sweeteners enterprises to release their 2014 full-year financial reports this month. Accordingly, sucrose and starch sugar enterprises recorded YoY falls in the figures. In 2015, such enterprises have made plans to rewrite the records. For instance, COFCO Tunhe would consolidate partnership with other enterprises to raise the efficiency in both production and distribution; Global Sweeteners would finish the factory relocation in Changchun City, Jilin Province and concentrate on producing high added-value starch sugars. “

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