ACESULFAME K FCC Prices are reasonable due to market stability for quite some time. Currently, production capacity is beyond demand. The global demand is around 16,000mt and each factory keeps their own market share with planned output. The market is not likely to change any time soon. ASCORBIC ACID SERIES Since our last update, prices have been rising now for more than eight months. Supply is unstable and prices continue to rise due to the sharp cost increase of corn and mining, plus the factory shutdown due to maintenance and environment controls. The environment control will become even more strict and on-going which will continue to affect the output from the major factories in Hebei and Liaoning Province. The upcoming shutdown for maintenance during the hot summer months will keep the supply short. The factories have experienced deficit for a long time due to the lowmarket in the last few years and are trying to make ends meet. Their chances to lower the price to gain market share are slim. On the other hand, we are seeing newcomers stepping into Ascorbic Acid production and new factory output will affect the market, but overall, the price is still very firm and continues to rise. CARNITINE Due to the government’s pressure for environment control, the factories in Liaoning Province have all shut down production. Prices have been increasing since April and most likely will continue for a few months. CHOLINE BITARTRATE AND BETAINE ANHYDROUS Prices are currently stable but may increase slightly in the next few months due to: 1. Part of the starting material is affected by the raw oil price. 2. The cost of environment control and labor cost. CITRIC ACID As the most common food additive, the price is currently stable. The overall demand has increased slightly and the supply is very stable and sufficient. COQ10 During April and May, one of the factories placed a hold on pricing due to environment control and production cost increases. The other two major factories increased the price by 30% and lead-time to three weeks or even longer based on production. CREATINE MONOHYDRATE The supply and demand is balanced now and the price is stable. However, the price may increase slightly due to: 1. Some factories have unstable output due to relocation and operation issues causing low inventory. 2. Some factories are trying to enter the market with low pricing but the result is not as good as expected. These factories will need to increase the price slightly to cover cost. CURCUMIN 95% EXTRACT The harvest this year is slightly less than last year. Supply was tight in the first quarter, but currently the supply is back to normal and step- by-step pricing appears to be stabilizing. Meantime, prices of Vitamin C derivatives are on a rise accordingly.
Chinese MARKET TRENDS By Tony Xue General Manager, ingredientsonline.com Shanghai
INGREDIENTSONLINE.COM • SUMMER 2017
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