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Home > News > Market Analysis - Monthly Report - August, 2020 - xylitol

Market Analysis - Monthly Report - August, 2020 - xylitol

ECHEMI 2020-09-08

1. Overview of market conditions in this period

Although the price of xylitol raw material corn fluctuates greatly in this period, the factory price is still tepid and difficult to pull.

 

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


This month is still a process of game between corn and starch Market Policy and market. The auction premium of old grain has dropped slightly, and the old grain has been released from the warehouse and a small amount of new grain has been listed. The corn spot market has concentrated on digesting the old grain reserve, while the downstream consumer enterprises have digested the stock of old grain to prepare for the purchase of new grain. The long short contradiction in the futures market has eased and the corn futures price has fallen back. In September, new cereals in North China were put on the market in batches. Corn supply in western Liaoning increased. After the consumption of old grains accelerated, new grains gradually supplemented the market. The main consumers of feed and deep processing shifted their attention to new grains. The short-term price trend is dominated by early frost, delayed listing and farmers' reluctance to sell, while the short-term volatility of corn and starch increases. In the futures market, the price in recent months is still under the pressure of new grain listing, and the forward price is supported by the adjustment. 


FACTORY NAME

FACTORY PRICE (USD)

CHANGE (COMPARED TO LAST WEEK)

DEVICE CAPACITY

DEVICE OPERATION STATUS

SHANDONG FUTIAN

2750-2850

Flat

30000Tons / year

20Tons / day

ANYANG YUXIN

2700-2800

Flat

20000Tons / year

10Tons / day

SHANDONG LONGLI

/

Flat

25000Tons / year

6Tons / day

 

3. Summary and Forecast

According to the current basic situation of supply and demand, the starch market will still move forward. The purchasing power of the demand side is insufficient, and the downstream enterprises are difficult to digest, and the upstream grain is sold sparingly. To sum up, the overall domestic food grade xylitol market is still weaker than the market price, and the downstream sales are difficult. Market transactions are common. It is expected that the food grade xylitol market will be difficult to pull up in the short term.

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

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