1. China's ex-works price of citric acid undergoes downtrend, Sept.-Nov. 2013
Summary: According to data from CCM, the ex-works price of lysine in China underwent an
overall downtrend during Jan.-Nov. 2013, mainly due to decreasing demand and increasing
supply.
Tag: corn products industry, GM corn, inositol, citric acid, lysine, VC antitrust lawsuit, Solid
fructose-glucose, functional oligosaccharide, corn purchase for temporary reserve, sugarcane
According to data from CCM, the domestic ex-works price of citric acid underwent a downtrend
during Sept.-Nov. 2013. In detail, the ex-works price of anhydrous citric acid decreased
significantly from USD1,072/t in Sept. 2013 to USD909/t in Nov. 2013. Notably, it fell sharply
with a month-on-month growth rate of -14% in Nov. As for the trend of the ex-works price of
monohydrate citric acid was similar to that of anhydrous one during Sept.-Nov. 2013.
As early as June-Aug. 2013, manufacturers increased the ex-works price of citric acid several
times due to the increasing product cost and the peak season of the drinks industry, which
increases demand for citric acid after suffering losses due to the low price of citric acid in the
first five months of 2013.
The decrease in the ex-works price of citric acid during Sept.-Nov. 2013 could be attributed to
the following aspects:
First and most important, weak demand for citric acid. Compared with H1 2013, the ex-works
price of citric acid remained high during Sept.-Oct. 2013 so that dealers had weak desire to
purchase large amounts of this product. Besides, as entering the off season of drinks, the
demand for citric acid from the beverage industry atrophied accordingly.
Additionally, China is the largest citric acid producer in the world, and the consumption of this
product depends on the overseas market to a great extent. However, citric acid exports
remained weak in this period. According to data from China Customs, the export volumes of
citric acid were 51,425 tonnes in Sept. and 52,501 tonnes in Oct., 7,155 tonnes and 6,079
tonnes less than that in Aug. respectively.
Second, the decrease in the cost. As the supply of corn has been increasing since Oct. 2013,
the market price of corn declined in Oct., and it fluctuated at a low level in Nov. 2013.
Moreover, under the current circumstance of citric acid overcapacity, in order to occupy more
market share, manufacturers have carried out low price tactics during this period. Also,
towards the end of 2013, manufactures have a strong desire to sell their stock of citric acid to
get funds.
It is estimated that the ex-works price of citric acid will remain stable in Dec. 2013. Generally,
the profitability of citric acid has been very low due to the decreasing sales price of this product.
Plus, with downstream dealers willing to purchase citric acid for stock at its current lower price,
it is unlikely that citric acid producers will decrease the price. However, winter is the traditional

2. slack season of citric acid, so demand for it will still be limited, which will hardly drive up its
price.
In the long term, citric acid will still face challenges in China, as its export volume may be
affected by the European Union (EU)'s sunset review and midterm review investigations on
China's citric acid, which started on Nov. 30, 2013 by the European Commission, in response
to applications from SA Citrique Belge and Jungbunzlauer Austria AG. The midterm review
investigation is mainly to survey the damage form in the anti-dumping measure. The Hs Codes
of correlated products are 29181400 and ex29181500.
In Sept. 2007, the EU launched an anti-dumping investigation into China's citric acid, and in
Dec. 2008, the EU issued its final ruling.
The Netherlands, Germany, Italy and Spain are the main EU destinations of China's citric acid.
In 2012, China had exported 117,620 tonnes of citric acid to these four countries, accounting
for 16% of the total export volume of domestic citric acid.
If the EU rules to continue anti-dumping measures against China's citric acid during the
implementation term of anti-dumping measures, it may have a negative influence on China's
export of citric acid in the near future
Furthermore, the demand for citrate will also have a certain impact on the demand for citric
acid, as it is a direct downstream product of citric acid and its consumption relies on the
overseas market as well.
Similarly, the Netherlands, Germany, Belgium, Spain, Italy and Poland are also the main EU
export destinations of China's citrate. Data from China Customs shows that in 2012, China had
exported a total of 42,700 tonnes of citrate to these six countries, accounting for around 33%
of China's total export volume of citrate.
Source: Corn Products China News issued by CCM in December.
Table of Contents of Corn Products China News 1312:
2013 annual review of China's corn products industry
China returns 120,000 tonnes of GM corn to the US again
Chinese corn products Imp. & Exp., Oct. 2013
China's inositol export value up but volume down, Jan.-Oct. 2013
Price update of corn products, Dec. 2013
China's ex-works price of citric acid undergoes downtrend, Sept.-Nov. 2013
China's ex-works price of lysine shows overall decline, Jan.-Nov. 2013
North China Pharmaceutical to compensate USD153 million for VC price fixing
Meihua Group commits to product development recently
Overview of new carbohydrate source—solid fructose-glucose
Applications of functional oligosaccharide in soybean products and collagen beverage

3. Nationwide government corn purchase for temporary reserve starts
2013/2014 minimum sugarcane purchase price in Guangxi decreased
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