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          1. Price of Sucralose Expected to Increase Continuously Due to Intense Supply
            Time:2016-09-12 hits:11018

            17 Jun 2016 --- China’s sucralose companies stated that they can’t accept new orders due to the tight supply of sucralose. Considering the short supply in China and the rest of the world, it’s predicted that the price of sucralose in China may continue to go up in H2 2016, according toCCM’s research.

            Since early June, some China’s sucralose manufacturers have more desire to make production, even expand the scale, due to the increasing price of sucralose.
            However, the short supply of sucralose won’t be eased in short term as the manufacturers are restricted by the environmental policies and production technology.
            CCM predicts that the price of sucralose in China will go up constantly with the market transaction price more than USD76.10/kg mainly due to the continuously intense supply of sucralose.
            High barrier of production

            Though the price of sucralose may continue going up, the production expansion won’t be easy as a result of its complicated production process, high-standard technology and more serious and comprehensive environmental policies in China.
            The rate of capacity utilization of China’s sucralose manufactories, including two leading enterprises (JK Sucralose Inc. and Changzhou Niutang Chemical Plant Co., Ltd.), will be restricted accordingly as a result of more serious and comprehensive environmental policies in China.
            Besides, it’s hard for some speculative small enterprises to expand the production due to its complicated production process, high-standard technology and tough handling of sewage, though the price remains at a high point. Also, they can’t make sure the stability of production and the quality of products, so it’s not easy for them to be accepted by downstream customers.
            At present, there are many sucralose manufacturers in China with strength varying from one another.
            A senior official from JK Sucralose Inc.(JK) expresses that the competition of a sucralose manufacturer not only depends on the production capacity and price, but also the quality of products, technology, environmental measures and comprehensive operating capability in that all of them are related to the management performance and sustainable development of the corporation.
            The Insider also thinks that JK pays attention to offering differentiated products. For example, the dissolution velocity of its sucralose powder is faster, from which the customer can enjoy better product experience. Besides, JK mainly accepts the regular orders and it doesn’t offer a public price, according to CCM’s research.
            Tight supply in China
            In China, the main sucralose manufacturers are all in a condition of supply tightness. Given such condition, the price is expected to rise constantly.
            Ji'an New Trend Technology Co., Ltd. (Ji'an New Trend) tells CCM that it’s producing sucralose actively at present due to the tight supply and increasing price of sucralose, with the sale price in China reaching USD60.88/kg or so.
            Techno (Fujian) Biotechnology Co., Ltd.(Fujian Techno), one of the major sucralose manufacturers in China, reveals that currently it has received many orders and the products are in the condition of short supply, so it won’t accept more new orders for the time being.
            What’s more, there is keen sales competition between Fujian Techno and JK, according to CCM’s research.
            According to a sales manager from Shandong Sunvision Sweet Co., Ltd. (Sunvision), the company is facing an intense supply of sucralose which is sold at USD60.88/kg.
            Its sucralose factory is under suspension and maintenance, but it’s expected to resume production soon. What’s more, the sales manager reveals that it plans to expand the production, with the capacity of sucralose enlarging from 700t/a to 2,000t/a.
            According to a salesman from Guangdong L&P Food Ingredient Co., Ltd. (Guangdong L&P), it can only meet the demand of customers with long-term relationship and doesn’t accept the orders from new customers due to the intense supply of sucralose.
            And the product specification is all in small packing (1kg/bag, powder). Currently, the sucralose capacity of Guangdong L&P is 500-600t/a and it also plans to expand the production for long-term development.
            Production reduction of Tate Lyle

            “The short supply of sucralose occurs not only in China, but also in the rest of the world”, stated by a salesman of China region of Tate & Lyle PLC (Tate Lyle).
            The insider also revealed that Tate Lyle has shut down the sucralose facility in Singapore permanently in H1 2016.
            From the global perspective, the intense supply of sucralose may continue due to the producing reduction of Tate Lyle. It’s reported that Tate Lyle planned to invest around ?18 million (USD26.16 million) to the transfer of all facility from Singapore to Alabama and the purchase of additional equipment, so as to produce all forms of sucralose of Tate Lyle in Alabamian Factories.
            If Tate Lyle can’t offer a mass supply of sucralose in H2 2016, the globally intense supply of sucralose won’t be eased, thus its price may increase. Thanks to the condition, some active enterprises of sucralose in China may seize the opportunity to get some benefits from it.
            Author: James Zhang, of CCM. CCM is the market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets.