Plasticizer storm causes starch sugar orders to shrink by 23%

The inspection of food safety caused by the plasticizer storm caused the demand for starch sugar to drop by 20% to 30%.

Tao Zhuo analyst Wang Tao recently told the First Financial Daily reporter that the impact of plasticizers on food and beverage companies is particularly significant, some non-standard enterprises in the food safety inspection because they do not meet the safety standards were seized or ordered to suspend production for rectification, The order of starch sugar disappeared, causing the operating rate of enterprises producing maltose syrup in Hebei to be reduced to only about 60%. In Henan, only three factories are maintaining production, while others are in a state of production suspension, and a large number of enterprises are in a state of loss.

Tian Qiule, manager of business division of Hebei Zhaoxian Qingyang Starch Sugar Co., Ltd., told reporters that the plant had been discontinued. When asked when to resume production, he said: “Look at the market, but now it is losing money.”

Starch sugar is roughly divided into crystalline glucose, maltose syrup and fructose syrup, among which fructose syrup is used in carbonated beverages, fruit juice beverages, and dairy products. Compared with white sugar, starch sugar prices are relatively cheap. At present, the price of 1 ton of 42% fructose syrup in Shandong is about 3,300 yuan, and 55% of the price is 4,200 yuan per ton. If it is converted into sugar, the price is about 6,300 yuan per ton. The price of sugar in Shandong Jinan is currently around 8,000 yuan per ton. Therefore, starch sugar has been welcomed by food companies in recent years. For the particularly sensitive SMEs, the use of starch sugar has more profits than sugar.

A Henan starch sugar production company official told reporters that the company's starch sugar sales decreased compared to last year, but do not want to disclose the specific amount of decline, he pointed out that because of the country's recent inspections are strict, there are some small food processing plants around. Due to incomplete procedures and other reasons have been closed down, resulting in the company's starch sugar sales decreased.

Wang Yukun, business manager of Shandong Shengda Trading Co., Ltd., said that from the current situation, the demand for starch sugar has decreased by 20% to 30%.

Wang Tao believes that at present, large companies such as Xiwang Sugar have launched a new starch sugar production project, and the country’s total starch sugar production will increase from 10 million tons this year to about 12 million tons, with adequate supply, plus food safety supervision. Large, such as the relevant departments require the use of fructose syrup in mooncakes, or the use of clear standards, will have some pressure on the starch sugar market outlook.