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Corn Products China News

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Headlines

This year, COVID-19 and the international economic situation has challenged China significantly. The Chinese government has made some policies and regulation plans to keep the grain supply as steady as possible. Among them, the No.1 Document for 2020 is aimed at stabilising food production and accelerating the recovery of the pig production industry, and the Major Tasks of the Planting Industry for 2020 stablilising the subsidy provisions for corn and soybean farmers, etc.

At the press conference on 21 Oct., the MOA attributed the increase in recent corn price to the huge downstream demand, increased harvesting costs, and hype through the capital market, and predicted that the price will unlikely continue such an upward trend in the future.

BBCA Group commenced its 500,000 t/a lactic acid & 300,000 t/a PLA project on 26 Sept. This year, such degradable eco-friendly material has gained much attention, as China has stepped up restrictions on the production, sale, and use of single-use plastic products.

In Sept., Jilin Meihua began to run its 300,000 t/a MSG project. Subsequently, the company and LHG will release new capacity, expected to further push up concentration ratios of the domestic MSG industry.

Recently, Henan Province has focused on developing the silage corn whole industry chain. With deeper implementation of projects related to "reduced planting areas in non-dominant corn producing areas" and "redirection of grains for use as animal feeds", silage corn has entered a golden period.

On 22 Sept., North East Fufeng Biotechnologies publicised the EIA report onits "glutamic acid-based efficient bacteria development & 200,000 t/a amino acid production line renovation project". It is planned to be invested with around USD50.15 million (RMB340 million) and will provide glutamic acid capacity of 250,000 t/a upon completion.

During Q1-Q3, 5 major listed pig enterprises in China all achieved buoyant sales, with positive business expectations. However, how the future pig market will perform is unpredictable, due to lower pig price recently and the commencement of this year's 7th round of price markups in feed.

In Aug., China exported 59,576 tonnes of citric acids (down 7.68% MoM and 17.89% YoY) at an export price of USD592.65/t (down 1.44% MoM and 5.23% YoY).

On 13 Oct., the EC announced that from that day on, the anti-dumping duty imposed on imports of Chinese MSG would be extended to the country's MSG (dry weight ≥50%) in mixture or in solution ranging between 33.80% and 39.70%.

This month, the corn starch price in north China recorded the highest over the past 5 years - USD429.67/t, up 2.66% MoM and 25.32% YoY - mostly due to constantly increasing corn price and demand growth during the Chinese National Day and Mid-Autumn Festival (1 Oct.-8 Oct.) as well as the upcoming "Double Eleven" shopping festival.

Table of Contents

Headline

Editor's Note

Column 1 Governmental Direction

China's corn related policies of Q1 -Q3 2020

Column 2 Market Dynamics

MOA explains recent price rise in corn

China plastic ban pushes PLA centre of attention

Jilin Meihua operates 300,000 t/a MSG project

China experiencing golden period for silage corn

Column 3 Company Developments

North East Fufeng Biotechnologies publishes glutamic acid-based bacteria project EIA report

China's 5 key pig companies report dramatic profit growth in Q1 -Q3

Column 4 Import & Export Analysis

Chinese corn products Imp. & Exp., Aug. 2020

China's citric acid export volumes in Aug. hit 2-year low

EC extends anti-dumping duty to imports of China's MSG in mixture/solution

Column 5 Price Update

Price update of corn products, Oct. 2020

China's corn starch price in Oct. hits 5-year record high

Column 6 News in Brief

CASDE for October 2020

Zhejiang Huakang approved IPO

Jinyufeng Biotechnology commences Yufeng Corn Circular Economy Industry Park Project

China's corn imports rise 340% YoY to 1.02 million tonnes in Aug.

China's corn kernel mechanised harvesting technology proved effective

CSIA's demonstration meeting for Feasible Technology for Starch Pollution Prevention and Control

Muyuan Foodstuff generates new loans of USD2.80 billion in Q1-Q3

China sets new record of 24,948.75 kg/ha corn yield

Jindan Technology says corn price will vary its production costs and gross margin

Wellhope to diminish impacts on increased corn price through rising feed price

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