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Home > News > ECHEMI Analysis > Market Analysis - Monthly Report - June, 2020 - Xylitol

Market Analysis - Monthly Report - June, 2020 - Xylitol

ECHEMI 2020-07-07

Xylitol prices move steadily low

1. Overview of market conditions in this period

Domestic production capacity is basically back to normal, foreign demand is still weak, factory competition is fierce, prices continue to fall;

图片1

 

2. Analysis of domestic situation

 

FACTORS OF INFLUENCE

HIGHLIGHTS

JUDGMENT

FACTORY OPERATING RATE, INVENTORY AND PRESSURE

Construction started normally. Zhejiang Huakang, Anyang Yuxin, Shandong Futian, etc. are currently only starting 40% -50%, but the inventory is normally high and Longli ’s inventory pressure is still small

Good

MARKET DEMAND

Price volatility, weak market demand, strong wait-and-see mood

Bearish

MARKET MENTALITY

Fierce market competition, serious competition for customers, mainly deal

Bearish

FACTORY FALLING PRICE MENTALITY

The vacant market share is large, the factory is uneven, and each low price competes for the share

Bearish

UPSTREAM RAW MATERIALS

Starch sales quotations are generally raised, and downstream is cautiously chasing after rising

Good

INDUSTRY EVENTS

European production cut

Good

COMPREHENSIVE JUDGMENT

Manufacturers' inventory returned to normal. Although the upstream prices were firm, market demand was weak. The prices were running smoothly as various manufacturers traded to compete for share.

Bearish

 

On July 2, the sixth round of auction of national Temporary Storage corn was still 100% traded, and the overall auction was still characterized by high transaction and high premium. After the average price was slightly adjusted last week, the decline did not continue. Auction high turnover made traders bullish sentiment continued, also helped increase the region and port prices to maintain high market expectations. However, it should also be noted that after Entering July, the first two rounds of temporary storage of corn are approaching. While it is still profitable, the recent temporary storage outflow increases, the grain volume of deep processing trade increases, and the periodic supply of corn market tends to enlarge. The second half of the week, supported by the auction policy, corn prices rebounded low;

Current domestic manufacturers offer:

FACTORY NAME

FACTORY PRICE (USD)

CHANGE (COMPARED TO LAST WEEK)

DEVICE CAPACITY

DEVICE OPERATION STATUS

SHANDONG FUTIAN

2900-2950

Flat

30000Tons / year

20Tons / day

ANYANG YUXIN

2800-2900

Flat

20000Tons / year

10Tons / day

SHANDONG LONGLI

/

Flat

25000Tons / year

6Tons / day

 

3. Summary and Forecast

According to the fundamental situation of market supply and demand, it is believed that the logic of the bull market in the starch market is transformed from the supply side to the demand side. The negative impact of the demand-side epidemic on the economy and consumption cannot be ignored. Before proceeding, trade with caution. In summary, the overall domestic food grade xylitol market is still weaker than the market price, and downstream sales are difficult. The downstream customers purchase because of the epidemic and the market transactions are generally. It is expected that the food grade xylitol market will remain low in the short term.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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