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Sucrose Supply Rise May Slow down Fast Development of Starch Sugar

According to Vice Chairman of CSA, China's output of sucrose may reach 12 million tonnes in the extraction season of 2011/2012, which may slow down the fast development of starch sugar.

 
PRLog - Dec. 13, 2011 - GUANGZHOU, China -- According to Mr. Ma, Vice Chairman of the China Sugar Association (CSA), China's output of sucrose may reach 12 million tonnes in the extraction season of 2011/2012 (from October 2011 to April 2012), which may slow down the fast development of starch sugar, such as high fructose corn syrup (HFCS) and glucose, according to CCM’s December issue of Sweeteners China News.

On 1 November, China's Production and Sales Meeting of Sucrose in Extraction Season of 2011/2012 was held in Haikou City, Hainan Province. In accordance with the meeting, the continuous diminished output of sucrose in recent three years is likely to be ended, and the output of sucrose may increase by about 14.83% in extraction season of 2011/2012 over that in 2010/2011. However, the expected increase in sucrose supply may slow down the fast development of starch sugar through reducing the replacement demand for starch sugar.

Compared with other sweeteners such as high intensity sweeteners and functional oligosaccharides, the sweetness, properties and application ranges of starch sugar are much closer to those of sucrose. And domestic starch sugar industry is benefited from the inadequate supply and price increase of sucrose; thus the improvement in sucrose industry can impact the starch sugar industry obviously.

The demand growth of starch sugar may decrease due to the increase in sucrose supply in 2012. In recent three years, inadequate sucrose supply in the past three extraction seasons of sucrose has given a boost to starch sugar's development. For example, both the outputs of sucrose in the extraction seasons of 2009/2010 and 2010/2011 were four million tonnes less than the sucrose consumption (TABLE), which has offered more potential market shares to other sweeteners, especially starch sugar. Meanwhile, starch sugar has developed well since 2009. For instance, the total output of starch sugar is expected to reach about 10 million tonnes in 2011 with a yearly growth rate of 8.7%. According to the CSA, the consumption of sucrose may continue to be about 14 million tonnes in 2012, in consideration of which, the replacement demand for starch sugar may reduce in 2012 due to the output increase of sucrose, which may reduce the total demand growth of starch sugar in 2012.

Besides, the increase in sucrose supply may further drive down the sucrose price, which may influence the gross margin of starch sugar producers. Caused by an inadequate sucrose supply, sucrose price has mainly shown a rising trend from October 2008 to August 2011. Chinese government has released sucrose stock for eight times with a total volume of 1.66 million tonnes in the first eight months of 2011, aided by which, the sucrose price has begun to decrease since August 2011. The increase in sucrose supply in the extraction season of 2011/2012 may further impel the sucrose price decrease in 2012, which may weaken the main advantage of starch sugar—competitive price—and suppress the price of starch sugar in 2012. In fact, though prices of starch sugar's raw materials—corn and corn starch—have deceased in recent few months due to the corn harvest, it is estimated that they may increase again in 2012. Therefore, the gross margin of starch sugar may decrease in the future.

Starch sugar producers admit the influence of the expected sucrose supply, but they also believe that the starch sugar industry will develop in 2012. For example, a sales manager of Zhucheng Dongxiao Biotechnology Co., Ltd., one main glucose producer with capacity of 300,000t/a, expressed that the demand for starch sugar will increase in 2012 thanks to its lower price than sucrose, but its growth rate may be lower than that of 2011 due to the increase in sucrose supply. In general, the starch sugar industry will keep on developing in 2012, but the speed may be slower.
Source: Sweeteners China News 1112
http://www.cnchemicals.com/Newsletter/NewsletterDetail_19...

Content of Sweeteners China News 1112:
Chinese government carries out environmental verification of starch and starch sugar producers
EU's final approval of stevia sweetener to drive Chinese stevia sweetener industry forward
Stachyose: opportunities and challenges co-exist
Jiangsu Lianwei to launch cyclamate project in Q1 2012
Overcapacity in China's erythritol industry may exacerbate in near future
Hebei Shengxue transfers 93.181% share
Layn cooperates with Health & Nutrition Business Unit of Cargill
Baolingbao's profits of FOS and erythritol may increase in 2012
JK Sucralose starts to construct the third phase of sucralose project
Three L-phenylalanine projects to be launched in H1 2012
Mannitol price increases obviously in Jan.-Nov. 2011
Domestic price of FOS has a downtrend since July 2011
……

If you are interested in CCM’s December issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

(Guangzhou China, December 6, 2011)

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
For more information, please visit http://www.cnchemicals.com.
CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_87...

# # #

CCM is an consulting company located in China, with services like market report, newsletter, database, price monitoring, export/import analysis, conference etc. CCM's foucusing is Agrochemicals market, food ingredients market, fine chemicals market.

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Contact Email:
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Source:Clair Lin
Phone:+862037616606
Zip:510070
City/Town:Guangzhou - Guangdong - China
Industry:Business, Food
Tags:sweetener, sucrose, supply, starch sugar, development, output, high fructose corn syrup, hfcs, glucose, high intensity
Shortcut:prlog.org/11747997
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