China VC Industry to be Regulated in 2011

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Recently, an article on China’s Vitamin C export has attracted much attention among food ingredient industry. The article “China to impose VC export quota in 2011?”, released in Corn Products China News 1101 by CCM, analyzes that China’s Vitamin C export quota may affect the global market and price trend.

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China VC Industry to be Regulated in 2011

  1. 1. www.cnchemicals.com China VC Industry to be Regulated in 2011Recently, an article on China’s Vitamin C export has attracted muchattention among food ingredient industry. The article “China to impose VCexport quota in 2011?”, released in Corn Products China News 1101 byCCM, analyzes that China’s Vitamin C export quota may affect the globalmarket and price trend.According to the article, such export quota was estimated to be carried out at the end of 2010 byNational Development and Reform Commission (NDRC). However, it still has no evidence to come outat the end of January, 2011. “It may still staying in inner discussion stage” told by the article’s authorfrom CCM. In addition, the article has also analyzed the advantages of this measure: eliminatingunqualified manufacturers and enhancing Chinese VC pricing power. Compared with last year, thefigures in this article showed that both domestic prices and export prices slumped to the lowest level in2010.Export quota is one of the regulated measures considering VC industry, and other measures are alsoincluded, such as: industry admittance, investment administration, etc. Such measures are expected toaim at helping to keep healthy development of this industry.However, it is not the first time to try to regulate this industry. According to CCM’s survey, some policiesand measures has been applied previously. The latest one related to VC industry was water treatmentmeasures in pharmaceutical industry, which eliminated some manufacturers for environmentalprotection. Besides, since DSM and BASF shrank the VC production, more and more capacitiesconcentrated in Chinese top 5 advanced VC manufacturers, such as Northeast Pharmaceutical Group,North China Pharmaceutical Group, etc. These top 5 suppliers accounted for most of the global marketshare. Under such circumstances, the price has boosted since 2008, which ultimately led to moreinvestment in VC industry. Besides, one of the key reasons for industrial expansion is localNeed more information or to purchase this report, please contact CCM at econtact@cnchemicals.com or on +86 20 37616606
  2. 2. www.cnchemicals.comgovernmental economy development policy, which allows more investments into VC industry.Therefore, administration supervision is included in the regulation measures.In the past years, the regulations on corn product processing industry have been highlighted. Citric acidindustry has been adjusted in August 2010, and VC is regarded as an over-capacity product. Therefore,it is quite probable for China to impose export quota on VC in 2011. “The government should enhancethe supervision on the implementation of this measure, if not, the measure would lose its role.” quotedform January issue, 2011 of Corn Products China News.About Corn Products China News: Corn Products China News brings you the latest information on newprice fluctuation, new market trends and intelligence, new legislationsand policies, new technologies, new area dynamics and new corn supplythat are shaping the market.About CCMCCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of morethan 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports,Newsletters, Buyer-Trader Information, Import/ Export Analysis all through its new proprietary productValoTracer.Please visit http://www.cnchemicals.com for more information orcontact econtact@cnchemicals.comCCM International, Ltd.Guangzhou CCM Information Science & Technology Co, Ltd.17th Floor, Huihua Commercial & Trade Mansion No, 80 Xianlie Zhong Road, Guangzhou 510070,ChinaNeed more information or to purchase this report, please contact CCM at econtact@cnchemicals.com or on +86 20 37616606

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