LONDON, Oct. 26, 2016 /PRNewswire/ -- This month the Announcement about New Food Additives was released, of which glucose based steviol glycosides were officially approved for use as food additives. This is expected to accelerate the research and development. Meanwhile, the publicity of the Yunnan Provincial 13th Five-year Planning for Cane Sugar Industry was finished, hoped to offer a guideline to the local sugar industry for improving its position nationwide.
The sugar price this month increased continuously. In the future, the figure will rise further, based on the increasingly short supplies at home and abroad.
In this context, HIS, featuring high sweetness and low calorie, will take the place of sugar gradually. However, they show different trends:
- Saccharin and cyclamate: no big price changes, since they are at the stage of recession
- Sucralose: high price, as it is now under development
In addition, starch sugar is also a key substitute for sugar. However, its price will have limited rises, due to decline in price of corn and flat beverage market.
Erythritol and steviol glycosides, as natural sweeteners, can also be used to replace sugar.
- Erythritol: limited price rises, in light of fall in price of glucose and mature technology
- Steviol glycosides: high price, as it is now under development
In regard to companies, Nanning Sugar expected a severe loss but slowdown fall in H1. It is anticipated that the company will make a turnaround by strategically acquiring sugar plants, establishing M&A fund, integrating sugar resources, and building dual-high high efficiency and water saving irrigation base. In addition, JK Sucralose won the intellectual property right suit in Japan, for which it would step by step open the Japanese market and will seize the market shares. Guangxi Guitang, despite the expected loss in H1, may make a turnaround in H2. On 30 June, 2016, glucose based steviol glycosides were officially approved for use as food additives in China. This should be an opportunity to the expand the range of applications for these particular glycoside.
In June 2016, expert examination and opinion collection in regard to the Yunnan Provincial 13th Five-year Planning for Cane Sugar Industry were finished – it is now under publicity. Specifically, development goals and focuses are highlighted, aimed at building up new opportunities to the local sugar business.
The use of erythritol as food additive is now well recognised worldwide. It is expected that the demand will increase, thanks to the development of healthy food and drinking business. However, the price will not rise largely, due to glucose price falls and mature technology.
In Jan.-May, China's exports of saccharin increased largely. Specifically, export volume in March recorded the highest and then went stable in April-May. Driven by high costs for environmental protection, the corresponding price stayed high in this period.
In Jan.-June 2016, impacted by low corn price, the prices of starch sugars showed declines. It is expected that the prices will not rebound, due to the flat demand caused by rainstorms in southern China.
In July 2016, the EU announced to levy anti-dumping duties on Fang Da Shenzhen and Fang Da Yangquan. This is anticipated to have no big impact on the cyclamate export business. Instead, the exports will maintain stability in the short run and even to increase in 2017. However, it will intensify the domestic market competition and will pull down the price.
Nanning Sugar predicted a severe loss in H1 2016. Given sugar price rises caused by enlarged supply shortages both at home and abroad, the company is expected to cut down losses continuously after taking measures based on local policies and its business.
In June 2016, JK Sucralose announced that it had won an intellectual property suit in Japan, and obtained 2 sucralose patents. The company intends to claim more shares in the sucralose market in the future.
Guangxi Guitang expected a net loss of USD0.15-2.11 million in H1 2016. This signals a close to its 2-year profit making. However, CCM holds a positive attitude towards its performance in H2, in light of the further decreased sugar supply.
In May 2016, China's export volume of mannitol rebounded largely, up by 22.02% YoY and 44.93% MoM. However, the combined figure in Jan.-May was down distinctly over the same periods of previous years. CCM believes that the export volume will make no large recovery in H2 2016, due to the decreased export rebate rate, sluggish foreign demand and price gap between China and foreign countries.
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