Stevia, in a good position to meet new demands

With the improvement of health awareness, sugar substitutes gradually enter into our life. However, people are afraid of the chemical compounds made in the laboratory due to their side effects. Therefore, natural plant extracts are becoming more popular than ever and stevia is such a product that can satisfy consumers' needs. Stevia is a "pioneer" in natural sweeteners and has been used for centuries. As early as 1500 years ago, Guaranís in South America began to consume stevia, which they called ka'a he'e ("sweet herb"). Japan is the first country to develop and use stevia, which accounts for approximately 40% of the sweetener market in Japan and its safety has been confirmed in some way. In the United States, many international brands have also launched stevia-based beverages and foods. Products containing stevia Since 2012, the number of new products containing stevia has almost doubled. In the second quarter of 2017, the foods and beverages containing stevia on the global market increased by 13% compared to the same period last year. Candy and chewing gum is the fastest growing category using stevia, with a growth of 125% Coca-Cola, Danone, Kraft Heinz, Nestle and PepsiCo have all put new products using this natural sweetener on the market, including snacks, dairy products, ready-to-eat cereals, carbonated drinks, fruit juice, etc. The following Lay's fresh tomato flavor and lime-flavored potato chips have also used stevia. Stevia has a wider application in beverages. Carbonated drinks and fruit juice beverages containing stevia has increased by 27% compared to the same period of last year, and energy drinks increased by 102%. Instafamous tea π also uses stevia In 2013, Coca-Cola launched the green packaging coca-cola-life in Argentina and Chile (perhaps because of the tradition of stevia used in South America). It uses stevia to replace 40% of the sugar, as a result, it can reduce 40% of calories in the ordinary cola. Its new packaging in 2018 highlights the “naturalness” of the stevia, which can better adapt to the consumers’  preference  for natural extracts. However, there are also some consumers pointing out its bitter aftertaste, and that is the biggest drawback of stevia. Coca-Cola-life 2018 new packaging Application difficulties and new breakthroughs Stevia can not be a perfect substitute for sucrose due to its certain defects. Reb A stevia extract is most widely used in food and beverage, however, low purity of Reb A can produce uncomfortable taste, while high-purity Reb A (such as RA95 to RA99) has a low solubility, which limits its application in beverages. Meanwhile, there are still many companies developing new type steviosides. For example, the Optimizer STEVIATM series developed by SGF has similar or even better taste than high-purity Reb A stevia extracts. Cargill and Evolva's Fermented Stevia EverSweet may emerge in 2018.

An Overview of Chinese Monosodium Glutamate (MSG)

Monosodium glutamate is a common food ingredient, it was first extracted from kelp by a professor of Tokyo University, who named it "Ajinomoto." Now it’s widely used in cooking and food processing. Modern MSG is mainly manufactured from grain (corn, wheat, rice, etc.), and purified by microbial fermentation. Cost Structure In the production of monosodium glutamate, corn accounts for the largest part of the cost. A ton of MSG consumes 2.2-2.3 tons of corn. Therefore, when the price of corn goes up, it may cause the MSG price to rise; and  if the price of corn continues to slump or decline, the decline rate of MSG is expected to be lower than that of the corn. The MSG production bases of Meihua Group are located in Tongliao (480,000 tons) and Xinjiang (220,000 tons). The company controls the cost of corn by enriching its supply sources. According to the statistics, the company's corn supply source in 2015 was more diverse than that in 2014, and the cost was also well controlled. Demand Since MSG's main downstream needs are food-processing and catering, so the needs of these two industries may  have a profound impact on the demand for MSG. According to National Bureau of Statistics, in 2016, the main business income of the domestic food manufacturing industry had a 8.8% year-on-year increase and reached 2.36 trillion Yuan, and total profit had a 9.2% year-on-year increase and reached 200 billion Yuan. The catering industry also maintained a good profit growth rate. The steady growth in the food manufacturing and catering industries ensures the market demand for MSG. In recent years, China's MSG export has become more and more difficult. At the end of 2008, the EU imposed 33.8%-39.7% anti-dumping duties against Chinese MSG; in 2014, the US Department of Commerce announced that it would impose 8.30%-8.32% anti-dumping duties on MSG made in China. However, China's MSG production capacity accounts for about 75% of the world's production capacity, export growth still remains stable. According to the data from China Starch Industry Association, the export of monosodium glutamate from 2008 to 2016 had increased from 200,000 tons to 420,000 tons, with an average annual growth rate of 13.8%, of which the exports to Europe and the United States accounted for 50% of the total export. Oligopoly MSG production is mainly concentrated in China. The large-scale development of China's MSG industry began in the 1980s. At present, China has become the largest producer and consumer of MSG. In 2014, 75% of the global MSG production capacity was concentrated in China. Since 2003, the domestic MSG industry has appeared oligopoly after three industry integrations. Before the market integration, there were probably 200  domestic companies. The low concentration and the weak bargaining power may lead to vicious price competition. There were three rounds of industry integration taking place in 2003-2004, 2007-2009, and 2011-2013, eliminating backward techniques, increasing concentration degree and finally cutting down to about 10 large companies. production capacities of major companies Name List Production Capacities(tons) Fufeng Group 1,200,000 Meihua Group 700,000 EPPEN 420,000 Lotus Health Group 160,000 Linghua Group Limited 100,000 Shandong Shenghua Group 80,000 According to the data of the Ministry of Industry and Information Technology, from 2010 to 2013, the backward production capacity of the MSG industry was eliminated by 189,000 tons, 93,800 tons, 143,000 tons and 285,000 tons respectively. The concentration of industry has been further enhanced. The market is monopolized by Fufeng Group, Meihua Group and EPPEN, and the CR3 is about 75%.

The Certificate of Inspection for Goods Inward/Outward is Canceled in Customs Clearance

The Certificate of Inspection for Goods Inward/Outward is promulgated by the administrations of quality supervision to prove that the import/export product has been submitted for inspection and quarantine. It is a very important document for the export and import in China. If you want to import/export some goods within the scope of the inspection and quarantine catalog (non-catalogue commodities may not be subject to inspection and quarantine), then you need to go to the Administration of Inspection and Quarantine first and have your goods inspected. After the goods have passed the inspection, you can get the Certificate of Inspection for Goods Inward/ Outward, and use it for the customs declaration. This procedure can affect the clearance of goods and has influenced the global trade of various products. To simplify the whole customs procedures and enhance the trade efficiency, the General Administration of Customs has decided to cancel the Certificate of Inspection for Goods Inward/Outward from June 1, 2018. After that, the inspection procedures and the customs declaration can be combined together, and the import/export company only needs to go through all the procedures at the customs. This is a big step in the institutional reform of the Chinese customs, and it will benefit numerous Chinese companies and those foreign companies which have business with China. Many companies in the chemical industry will also benefit from this decision, because many chemical products are in the scope of inspection and quarantine catalog , for example food ingredients, raw materials of coatings, textile printing and dyeing, agrochemicals, daily chemicals and rubber etc., and from now on, the import and export of these chemical products can be simplified. Compared with the previous customs clearance process, the complete cancellation of the Certificate of Inspection for Goods Inward/ Outward will simplify declaration procedures, reduce customs clearance steps, and speed up the release of goods. It will not only lower the clearance costs but also facilitate the global trade. It is expected that there will be more than 10% of the import and export goods can benefit from it.

DSM will suspend vitamin C production for 4 months

DSM announced that it will upgrade the plant of DSM Jiangshan Pharmaceutical (Jiangsu) Co., Ltd, and will suspend vitamin C production for 4 months in the second half of 2018 The Royal DSM N.V. announced that it will continue increasing the  investment in production facilities of Jiangshan Vitamin C plant to enhance its operating capabilities, and will stop production for a long time in the second half of 2018 for overall facility upgrades. This action will again reflect DSM's long-term commitment to higher quality, safety, sustainability, and productivity. The suspension will start in June and will last for 4 months. Upgrade for production facilities not only follows DSM's sustainable development strategy, but also actively responds to the "Green China, Beautiful China" policy of Chinese government. Moreover, it will help reduce greenhouse gas emissions and support the sustainable development of Jiangsu Province. During the suspension, DSM will ensure the stable supply of vitamin C for all contracted customers.

The Team of OKCHEM Had a Great Success at THAIFEX 2018

THAIFEX 2018, held at the IMPACT Exhibition & Convention Center, Thailand, from May 29 to June 2, came to a successful ending last week. This exhibition is one of the most influential food & beverage, food technology and retail & franchise exhibitions in the region, connecting suppliers worldwide to buyers from the fastest growing emerging markets in Asia and beyond. This year, the five day event gathered about 60 thousand visitors and hundreds of experts of the food industry under one roof with an exhibition area of 107,000 m2 As a leading chemical B2B platform, OKCHEM was also one of the 2,500 exhibitors and showed itself at stand CC39. In this exhibition, OKCHEM had once again demonstrated its value to both the buyers and suppliers as a professional platform. A coffee manufacturer from Thailand was very interested in our ChemBnB group buying. After we showed him our web pages, he took a screenshot and registered on our website immediately. He said the group buying in foreign trade was very innovative and it might help him a lot in the future purchasing process. One visitor form the branch office of an international company in Thailand, came to our stand and said they wanted to search sucralose. But we did not have any suppliers of sucralose, so we asked him to submit the buying request online and could help him search quality sellers. “It was fantastic!” the visitor was very satisfied with our service. Some buyers were interested in the product prices on our website, and even wrote down the manufacturers and prices on the notebooks. There were also a lot of visitors attracted by our “big bang” lucky draw. All the registered users could have the chance to win a $100, $500, and $1000 voucher on OKCHEM. With so many amazing prizes every day, there were plenty of visitors coming to our booth to try their luck. All the lucky ones had been displayed on our homepage, and the prizes had also been sent to their accounts. Thanks for joining us at THAIFEX 2018! We hope everyone of you can enjoy your journey on OKCHEM.

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Anhui Jinhe Industrial Co., Ltd.
Anhui Jinhe Industrial Co., Ltd.
Register Time: 2006-12-24

Main Product: The fine chemical products of the company are mainly applied in the field as below: high intense sweeteners, including Acesulfame-K and Sucralose; Pharmaceutical intermediates, including Methyl Maltol, Pyridine Hydrochloride, Methyl/Ethyl Aetoacetate, and Flavorants including Ethyl Maltol and Methyl Cyclopentenolone. Basic chemical products mainly used in industrial field include Hydrogen Peroxide, Ammonia, Nitric acid, Sulfur acid, Melamine, Diketene and products used as fertiliser includes Carbamide and Ammonium Bicarbonde.

Zhejiang Shengxiao Chemicals Co., Ltd.
Zhejiang Shengxiao Chemicals Co., Ltd.
Register Time: 1998-04-23

Main Product: Sodium Butyl p-Hydroxybenzoate, Enhanced Nipagin Sodium, Methyl p-Hydroxybenzoate, Butyl p-Hydroxybenzoate, isopropyl p-hydroxybenzoate

Shandong Hualu-Hengsheng Chemical Co., Ltd.
Shandong Hualu-Hengsheng Chemical Co., Ltd.
Register Time: 2000-04-25

Main Product: ammonia-alcohol, urea, water soluble fertilizer, monomethyl amine, acetic acid, etc.

Chongqing Chuandong Chemical (Group) Co., Ltd.
Chongqing Chuandong Chemical (Group) Co., Ltd.
Register Time: 1979-05-03

Main Product: Formic acid and formate, Phosphoric acid and phosphate , Yellow phosphorus and phosphide, Chemical reagents, Fine chemicals , Electronic chemicals, Food & feed additive