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Sweeteners China News 1208 - Annual Subscription

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Welcome to the August issue of Sweeteners China News published by CCM International, a professional consulting company which has been extensively and intently focusing on dynamics of China's sweetener industry.

Domestic corn price's growth rate has begun to slow down since Dec. 2011, but it was still at a high level in H1 2012, which exert a negative influence on corn starch's profit. For instance, three Chinese leading corn starch producers, namely Xiwang Sugar, Global Sweeteners and China Starch have suffered poor corn starch business in H1 2012 compared with that of H1 2011 owing to the high price of corn and weak demand for corn starch.

Additionally, in recent years, more and more domestic sweeteners are exported to overseas market and some even enjoy good export development mainly due to the strong demand from overseas market. For example, domestic cyclamate's export volume witnessed an uptrend and its export price remained stable in H1 2012. Besides, the export volume of sucralose also increased in the first five months of 2012 and its price increased slightly compared with that of H2 2011.

Moreover, some sweetener projects have been finished in July 2012. Shandong Huayi has put its crystalline glucose production lines with total capacity of 3,800,000t/a into production in Shandong Province. And Anhui Jinhe has formally put its new expansion project of acesulfame-K with capacity of 5,000t/a into production.

Domestic stevia sweetener market developed slowly during past years, and this trend may remain in the near future.

Chinese cyclamate enjoyed a good development abroad in H1 2012, which can be tracked from the increased export volume and the stable export price.

In last two months (June and July), the Chinese government released several policies about food safety construction to strengthen the supervision on food safety, and it is a good time for sweetener enterprises to take advantage of these policies to develop themselves.

In H2 2012, opportunities and challenges will coexist in Chinese maltose syrup industry.

In July 2012, Guangdong L&P officially published the tender notice about the civil engineering construction of the first phase of its sucralose expansion project, suggesting that the company has already planned to expand its production capacity of sucralose.

Shandong Huayi puts its crystalline glucose production lines with total capacity of 380,000t/a into pilot production in July 2012.

Anhui Jinhe formally put a new acesulfame-K production line into production in July 2012; however, some insiders of acesulfame-K have a negative outlook about this project.

Baolingbao's revenue and net profit have increased by 6.11% and 18.10% respectively in H1 2012 over H1 2011.

China's corn starch witnessed a poorer performance in H1 2012 than that in H1 2011, due to increased price of raw material and weak demand.

Domestic market price of aspartame witnessed a downtrend in H1 2012 and it's estimated that the price may remain the decrease with a small range in H2 2012.

Domestic prices of three key sugar alcohols, including maltitol, xylitol and sorbitol, are expected to increase in H2 2012.

Export volume of domestic sucralose reached about 565 tonnes in Jan.-May 2012, increasing by about 180% over the same period of 2011.Yucheng City awarded as China Nutrition and Health Industry CityXinghua Green to launch solution about no after taste of stevia sweetener (RA98)QHT formally changes its company name Application for issuing corporate bonds of Nanning Sugar approved JK Sucralose continues market expansion through IFT Food Expo 2012

Domestic stevia sweetener market may develop slowly in future

Chinese cyclamate enjoys good development abroad

National policies have great influence on sweetener enterprises

Opportunities and challenges coexist in Chinese maltose syrup industry

Guangdong L&P's sucralose expansion project enters construction bidding phase Shandong Huayi puts crystalline glucose production lines into production Anhui Jinhe's new acesulfame-K project seems unpromising Profit of Baolingbao grows in H1 2012Layn's operating profit loss reaches about USD3.2 million in H1 2012

China's corn starch performs poorly in H1 2012

Ex-factory prices of Chinese sweeteners in July 2012Domestic price of aspartame suffers decrease in H1 2012Domestic prices of three key sugar alcohols will increase in H2 2012

Export overview of some sweeteners and raw materials in China, June 2012

Export volume of sucralose rises 180% in Jan.-May 2012

Companies mentioned

GLG Life Tech Corporation Guangdong L&P Food Ingredient Co.,Ltd. Shandong Huayi Corn Technology Co., Ltd. Baolingbao Biology Co., Ltd .China Starch Holdings Limited