Overview:
Chinese corn price has been increasing since this May, driven by the speculation of corn output reduction. In order to curb the increasingly high corn price, Chinese government takes some measures, such as enlarging auctioned corn, allowing transgenic corn imports from the US, etc.
Being subject to the increasing corn price, the prices of many corn downstream products like lysine, cornstarch and VB2 went uptrend in accordance.
As global economy warms up, Chinese export situation has been improving in Q1 2010. Especially exports pf some products like furfural, lysine and citric acid to ASEAN increased a lot. And Thailand gradually becomes one of the leading export destinations of Chinese corn deep processing products.
The 2nd round of Strategic and Economic Dialogue between the US and China will be held in late May, and new energy issue will be again put on the agenda, after Obama’s visit to China in last November, and new energy is probably to become a investment hot spot in 2010.
VC products export volume increased while price decreased in Q1 2010.
Chinese sorbitol export volume has soared by 63% in Q1 2010 year on year, mainly aided by the increasing export volume of sorbitol to ASEAN.
Cornstarch price in Shandong has maintained uptrend since early April, mainly because of increasing corn price and cornstarch demand in the market.
Lysine price has started to increase slightly since early May, attributed to increasing demand for lysine and rising corn price.
Furfural export price witnessed large increase in Q1 2010, mainly driven by the increasing price of furfural in domestic market during the period.
BASF and Guangji Pharmaceutical claimed to raise VB2 price in the world from middle May, indicating the worldwide VB2 price will go uptrend.
The 2nd round US-China Strategic and Economic Dialogue will be held in Beijing on May 24th~25th, 2010, on which new energy and RMB exchange rate issues will be discussed.
Novozymes and Dacheng Group will jointly develop biomass-based chemical alcohol and have signed an agreement on Apr. 9th, 2010.
Attributed to its huge development potential, China Starch obtained Goldstone Fund (a privately offered fund)’s investment of UDS12.85 million, and remised 86 million share.
Guangzhou Unikbio, specialized in manufacturing and supplying enzyme preparation, plans to sell its 10% shares to purchase most shares of Henan Yangshao, one of leading enzyme preparation enterprises in China.
Ronghua Industry will remove its cornstarch and GA plant away from downtown, and expects government will compensate for all its loss in this removal.
Henan Lianhua has been under investigation by China Securities Regulatory Commission, as it was probable to have breached security laws.
An expert suggests directly using corn to produce sodium gluconate rather than crystalline glucose and corn starch.
China’s enterprises have been increasing corn imports from the US, driven by the tight corn supply and excessively high corn price domestically.
Stocks price of corn seed companies maintain uptrend in May, despite gloomy in many other Chinese stocks.
Cellulosic ethanol achieved sound development in China, reflected by passed mid-term evaluation of the project of high temperature fermentation and bio-refining of cellulosic ethanol in Chinese Academy of Sciences.
Companies Mentioned
Dacheng Group Co., Ltd. China Starch Holdings Co., Ltd., Guangzhou Unikbio Biotechnology Co., Ltd., Gansu Ronghua Industry Group Co.,
Ltd.
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