production and market of sodium gluconate in china

CCM Data & Primary Intelligence

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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: [email protected]

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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



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

… 0

VII-20 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



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.



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：

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

No. Enterprise 2006 2009 2010 2005 2009

2010

(Jan-Aug)

Sales

revenue '09,

'000 USD

Market

share

'09, %

Expansion

plan '11, t/a

1 Shandong Xiwang - XX XX 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

production and market of sodium gluconate in china

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