CCM Data & Primary Intelligence
Production and Market of Sodium Gluconate in China
The Second Edition
Researched & Prepared by:
Guangzhou CCM Information Science & Technology Co., Ltd. Guangzhou, P. R. China
Oct. 2010
Copyright by Guangzhou CCM Information Science & Technology Co., Ltd. (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com
Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
Email: econtact@cnchemicals.com Fax: +86-20-3761 6968
CCM Data & Primary Intelligence Description: China is one of the largest production and consumption bases of sodium gluconate around the world. Driven by strong demand from construction industry, China’s sodium gluconate industry has experienced rapid development in the past few years. Total output in 2009 has jumped to 334,000 tonnes from 112,000 tonnes in 2005, with CAGR of 33.14% in 2005-2009. The Europe Union has made its final ruling of the anti-dumping case on sodium gluconate from China on July 30, 2010, which is not a good signal for domestic sodium gluconate manufacturers. What challenges would China’s sodium gluconate manufacturers meet? What the true purpose of this policy released by the Europe Union? How many sodium gluconate from China has been exported to the EU market in recent years? And what are the existing policies on this industry? Corn starch and glucose are the most important raw materials for China’s sodium gluconate manufacturers. China’s sodium gluconate industry faces a huge pressure from increasing cost of raw materials this year, especially that of corn starch and glucose. What caused the rise in raw material cost in China? What the future strategies of sodium gluconate manufacturers in different regions in the near future? Which raw material would be more popular? Shandong Xiwang with capacity of 100,000t/a of SG has greatly changed domestic competition landscape of this industry by its entrance since 2009. What the detailed performance of the company’s sodium gluconate business in recent years? What challenges other sodium gluconate in China face? How many manufacturers engaged in this industry? Besides, CCM also provides the insight on the following key issues in this report: - Consumption pattern of sodium gluconate in China - Differences between the two major production technologies in China - Future opportunity for new investors in China
Main content: No.
Content
Page
Executive summary
1
Introduction & methodology
3
I
Historical development of sodium gluconate industry in China
5
I-1
Brief introduction of sodium gluconate
5
I-2
Historical development
6
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CCM Data & Primary Intelligence II
Environmental analysis of China’s SG industry (2007-2010)
7
II-1
Anti-dumping case from the EU
7
II-2
Governmental regulations on corn deep processing industry
7
II-3
Governmental support for construction industry
8
III
Supply and demand of SG
10
III-1
Current production situation
10
III-1.1
Production
10
III-1.2
Active producers
11
III-2
Raw material supply
18
III-3
Price of SG (2010)
19
III-4
Import and export analysis
22
III-5
Consumption pattern of SG in China
28
III-5.1
Market size of SG in major end use segments
28
III-5.2
SG’s application in major end use segments
30
III-5.2.1
Consumption of SG in concrete additives
30
III-5.2.2
Consumption of SG in water quality steadying agent
32
III-5.2.3
Consumption of SG in electroplating detergent
33
III-5.3
Consumption characteristics & discussion
34
IV
Production technology of SG
35
IV-1
Different pathways/methods
35
IV-2
Research status
36
V
Forecast
37
V-1
Barriers and driving forces for the development of SG in China
37
V-1.1
Barriers
37
V-1.2
Driving forces
38
V-2
Forecast on SG in the next five years – production, import and export,
39
VI
Conclusion, opportunities and recommendation
41
VII
Appendix- profile of major producers
42
VII-1
Shandong Xiwang Bio-chem Technology Company Limited
42
… VII-20
0 Jinan Huaming Biochemistry Co., Ltd.
61
Executive summary: Around 30 years ago, China started to develop sodium gluconate (SG) industry, and has witnessed rapid production expansion in recent ten years. More and more players entered this industry in order to catch the commercial opportunity. At present, the country has become one of
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CCM Data & Primary Intelligence the major SG production bases in the world. Identifying the entry and expansion of Chinese SG as a detriment to its market, the European Union (EU) launches an anti-dumping probe into SG from China from August 11, 2009. In the next few years, the EU’s determination would put great obstacles in the way of most domestic SG producers’ expansion in EU market. While with gradually mature production technology, China’s SG output and export will continue to increase in the coming years. - Production Experiencing fast growth since 2006, the number of SG producers in China reaches more than XX in 2010, with total capacity around XXt/a. In the past few years, some small enterprises have been squeezed out from China’s SG industry mainly by the intense competition. Thanks to booming demand around the world, China’s SG industry has experienced a golden age with fast development during 2003-2009, with CAGR of XX% for total output, which reaches around XX tonnes in 2009. Meanwhile, total sales revenue of China’s SG industry hits USDXX million in 2009, with CAGR of XX% during 2003-2009. Shandong Xiwang, Shandong Kaison, Shandong Xinhong and Jiangsu Zhuoyun are the top 4 SG producers in China with total capacity reaching XXt/a in 2009, accounting for XX% of China’s total. - Price SG price is mainly affected by the quotation of sugar and corn in China. Driven by increasing price of sugar and corn in China this year, SG producers have increased their exWork prices slightly in recent months. As the largest producer of technical grade SG in China, Shandong Xiwang has much stronger pricing power in technical grade SG than other domestic companies. - Import and export China’s export volume of SG in the past few years has been increasing stably, reaching around XX tonnes in 2009 with CAGR of XX% during 2005-2009. Also, the export volume in 2009 accounts for XX% of total domestic output. Owing to more intense competition and lower profit, many SG manufacturers would rather export SG by themselves than via traders. Most of China’s SG is exported to Asia region, accounting for XX% of total domestic export volume in 2009.
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CCM Data & Primary Intelligence Import volume of SG has been much less than export volume in recent years; only a small quantity of SG is imported for some special applications. - Consumption In the past few years, development of China’s SG industry still keeps fast along with the increase and enlargement of demand for downstream industries. China’s apparent consumption of SG in 2009 reaches around XX tonnes, with CAGR of XX% in 2005-2009. In China, a large part of SG is used in industry, and is seldom used in food additive and pharmaceutical. It can be used in set-retarding agent and water reducing admixture, water quality steadying agent and electroplating detergent, etc. In 2009, concrete additive industry is still the largest consumption field of SG in China. - Technology In China, two production technologies co-exist for SG production: fermentation method and catalytic oxidation method. Fermentation method has become a promising and key technology in China and most new investors in SG industry have chosen it as their production technologies in the past five years. Fermentation method gains more advantage over catalytic oxidation method in China in the past few years, for which the credit goes to its lower manufacturing cost and abundant raw material supply. As of 2009, capacity of SG produced by fermentation method accounts for around XX% of its total capacity in China.
Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way. Sample pages：
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III-1 Current production situation III-1.1 Production China is one of the key production bases of SG around the world with total capacity around XXt/a in 2010. Thanks to booming demand around the world, China’s SG industry has experienced a golden age with fast development during 2003-2009, with CAGR of XX% for total output. ……… At the same time, sales revenue of China’s SG industry hits USDXX million in 2009, with CAGR of XX% during 2003-2009. Figure III-1.1.2 Sales revenue of SG industry in China, 2003-2010
Note: Sales revenue of SG in 2010 is estimated by CCM International Source: CCM International
III-1.2 Active producers Growing fast since 2006, the number of SG producers in China reaches more than XX this year. Some producers like Shandong Xiwang and Shandong Fuyang with larger capacity have engaged in China’s SG industry in the past few years, in order to obtain commercial opportunities. ……… Table III-1.2.3 Production information for major SG players in China Capacity, t/a
Output, tonne
Sales
Market
2010
revenue '09,
share
(Jan-Aug)
'000 USD
Expansion No.
Enterprise 2006
1
Shandong Xiwang
…
……
XX
XX
2009
2010
2005
plan '11, t/a
2009
'09, %
-
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
5,000
XX
XX
XX
XX
XX
XX
XX
XX
Source: CCM International