LONDON, July 6, 2016 /PRNewswire/ --
Since late May 2016,China's sugar price has again increased.The international figure also rose largely.In light of the decreases in global sugar supply,the prices are expected to maintain strong upturns in future.
In June 2016,China's environmental protection tax law is to be examined,expected to be issued within this year.Meanwhile,MEP solicited public opinions on the revised water pollution prevention and control law.Since 1 Jan.,2015 when the environmental protection law was officially implemented,the Chinese government has in succession issued many environmental laws and regulations. Sweetener enterprises,as a key target during pollutant emission monitoring,have been impacted greatly.
Many Chinese sucralose producers are now unable to accept new orders due to the tight supply,according to CCM's research.
Given the short supply both at home and abroad,the price of sucralose in China is expected to continue going up in H2 2016.
In early 2016,impacted by decreased corn price,HFCS price decreased continuously.Then in May, the figure rose, but again fell in June.Thanks to the increasing temperature and the coming of peak consumption period for beverages,HFCS price is expected to rise to certain extent. However,policy instability and fierce market competition will be drawbacks.
On 14 June, 2016,COFCO Tunhe announced to acquire 7 subsidiaries of China National Sugar & Alcohol Group Corporation,at a total of USD82.56 million (RMB544 million).This is expected to help level up COFCO Tunhe's market position.
Shandong Longlive,the largest XOS producer in China, has stepped into the European pet food market and has been vigorously exploiting the American healthcare product market. However,drawn back by the sales of another leading product,ethanol,the company had unsatisfactory financial performance in 2015 and Q1 2016.
On 12 June,2016,Guilin Layn announced to revise its proposal to privately issue A-shares.If the proposal is approved by the shareholders' meeting and CSRC,the company will collect the fund to acquire 1 00% of shares in Niesheng (an E-commerce company) and advance the construction of "Big Health" ecological circle,to finally achieve the integration of production and sales,the joint action of online and offline resources and the combination of digital marketing and product R&D. All this will help strengthen its competitiveness.
In Jan.-April 2016,the 3 designated producers in total produced 5,141.09 tonnes of saccharin and the national exports reached 5,160.38 tonnes, making historical high.In addition,the ex-works price in this period was 39% higher than the average price in H1 2015. The strict standard for using food additives to a large extent has restricted the application of saccharin in food.It is expected that the demand will continuously decrease.
China's AK price showed an upturn in May 2016,mainly thanks to the improved industry concentration ratio and the tight supply of DK (raw material).
In Jan.-April 2016,China's exports of sorbitol increased in both volume and price,thanks to the increased exports to Japan,South Korea and Southeast Asian countries.It is expected that in H2,the exports will continue risingPolicy?
The Environmental Protection Tax Lawofthe People's Republic ofChina is to be examined, expected to be issued this year. This signals that the pollutant emission charge system is to be substituted for environmental protection tax mechanism. As key targets
during pollutant emission monitoring, sweetener enterprises will face increasing environmental protection and cost pressures.
The US made a big reform of food labelling, by revising the Food Nutritionals Labelling for prepackaged food. For the first time, sugar addition is listed as a key target for monitoring. This will impact the global sweetener consumption and will lead consumers to take low calorie food.
In late May, sugar price stopped the fall starting from mid-April and began to rise again. Meanwhile, international sugar price rose also. Accordingly, China's sugarcane growth and sugar yield will be impacted by abnormal climate conditions, India's output of cane sugar is surely to decline, and Brazil's export of sugar is expected to decrease. All this will tighten the global sugar supply and help push up price rises.
Guilin Layn made adjustment in private placement proposal, which is aimed acquiring 1 00% of shares in Niesheng, extending supply chain and establishing "Big Health" biological circle.
COFCO Tunhe intended to acquire CNSAGC's 7 subsidiaries and won the auction of Chongzuo Yongkai Zuojiang Sugar Making Co., Ltd., which will help solidify its market position.
Shandong Longlive has marketed its XOS in Europe, and has exploited the US' healthcare product market.
Aspartame was reused by PepsiCo in its Pepsi Light/ Diet, since sucralose applied before caused bad tastes to consumers.
Wanglaoji launched sugar free and low sugar content herbal teas. This is a trend about sugar free consumption.
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