Market Trends of China Starch and Starch Derivatives Industry
This section covers the major market trends shaping the China Starch & Starch Derivatives Market according to our research experts:
Rise In The Price Of White Sugar Is Boosting The Demand For Starch Sugar As Cheaper Alternative Of Sweetener
China's sugar price increased significantly from USD 821 per metric ton in January 2016 to USD 1,003 per metric ton in December 2016. In 2017, the price remained on a high level, fluctuating around USD 960 per metric ton. Thus, this indicates the rising price of white sugar in the country. Furthermore, the rising sugar price is corelated with the higher production costs in the middle kingdom, caused by sugarcane prices. Sugar manufacturers, who purchase sugarcane at a price lower than the pre-set price, have to compensate growers for the price difference. Meanwhile, the sugarcane procurement price is correlated to the pre-set tax-included price of sugar. If the actual sugar price is significantly higher than the pre-set price, the actual sugarcane procurement price should also be higher than the pre-set price. Furthermore, due to higher costs of energy consumption, environmental protection, and stuffing, the actual sugar production costs in 2017-2018 was higher than the figure in 2016-2017.
Fast Expansion Of The Delivery Business Is Boosting The Demand For Wrapping Paper
The booming logistics and small house appliance industries have stimulated China's corn starch business, as this logistics and delivery business offers lucrative opportunities to the small house appliances business. Furthermore, according to the China Starch Industry Association, the national production of corn starch reached historical records in 2017, topping 25.9 million metric ton, up by 15% year-on-year. The National Bureau of Statistics of China depicted the development of cardboard and paper production in China from 2014 to 2017. In 2017, the production of cardboard and paper reached a total of approximately 125.42 million metric in China, which, in turn, indicated the demand for raw materials used in the production of paper and cardboard. Hence, this is boosting the starch market's growth in the country.
