Citric Acid Export Increases Stably

By Wang Wei

Rapid output growth

The capacity of citric acid and citrates in China was more than
1.0 million t/a in 2005 and the output reached 630 thousand tons,
an increase of 16.67% over 2004. The production was more
concentrated. The output in Anhui BBCA Biochemical Co., Ltd.,
Shandong Ningmeng Biochemistry Co., Ltd., Yixing-union
Biochemical Co., Ltd. and RZBC Co., Ltd. was more than 50
thousand tons each and their total output accounted for 53% of
the national total.

Stable export increase

The export amount of citric acid in China further increased and
the export price also went up in 2005. The export amount of citric
acid in China was 424 712 tons in 2005, an increase of 6.3% over
2004 and the export value was US$314 million, an increase of 9.2%.
The export amount of citrates was 60 179 tons in 2005, an increase
of 23.4% over 2004 and the export value was US$45.28 million,
an increase of 22.4%.
   With impacts from the raw material price rise and the demand
increase, the export price of citric acid rose stably in 2005.
The average export price of citric acid was US$739 per ton in
2005, an increase of 2.8% over 2004.
   Citric acid in China was exported to 121 countries and regions
in 2005. Major sales markets included the United States, Japan,
the Netherlands, Belgium and Turkey. The amount exported to
those 5 countries accounted for 36.2% of the total. Citrates in
China were exported to 87 countries and regions in 2005 and 14
of them had an export amount of over 1 thousand tons. Major sales
markets included Belgium, Japan and Canada. The amount exported
to those 3 countries accounted for 37.3% of the total.
    Major citric acid export companies in China in 2005 included
Anhui BBCA Biochemical Co., Ltd., RZBC Co., Ltd., Yixing-union
Biochemical Co., Ltd., Shandong Ningmeng Biochemistry Co., Ltd.,
Shanxi Fenhe Biochemical Co., Ltd. and Anhui Worldbest
Bio-pharmaceutical Co., Ltd.

Sustained high price
of raw materials

The grain price in China was maintained at a high level in 2005.
China gives firm support to agriculture. The grain price is
therefore kept stable to increase farmers' income. Prices of
corn and sweet potato, major raw materials for the citric acid
production in China, have always maintained at a relatively high
level.

Initial results in environmental protection

Environmental protection has received unprecedented attention
today. Environmental protection technologies and facilities
have improved greatly. An environmental protection investment
of RMB136 million was made during 2003-2004 and the image of
enterprises has been greatly upgraded. With the progress in
environmental protection science and technology, some citric
acid producers use waste residues and waste liquids generated
in fermentation to produce marsh gas for the use in power
generation, refrigeration and boiler fuel and also to be
supplied to nearby residents. Not only environmental protection
pressures reduce, economic benefits also increase.

Existence of antidumping risks

Due to the rapid capacity expansion and the stable export growth
in the domestic market, the export of citric acid is faced with
frequent dumping investigations. Citric acid producers in the
United States launched dumping investigation into citric acid
from China in 1999. Chinese firms made response and the
arbitration made the ruling of causing no industrial injuries.
(CCR2000, No. 8) The United States and the EU are closely
following the development and export of the citric acid sector
in China. Once their interests are harmed, they would lodge
antidumping charges. In October 2003, Ukraine imposed a
temporary antidumping tax of 130% on the import of citric acid
from China. (CCR2003, No. 31) In 2005, India imposed an
antidumping tax on the import of citric acid from China. (CCR2005,
No. 23) As market competition is getting fiercer, hidden risks
for China to meet more antidumping cases will exist at all times
and great attention should be paid by the citric acid sector in
China.

Export of Citric Acid in China in 2005
            Amount (thousand tons)    Growth (%)    Value (US$
million)     Growth (%)
Citric acid     424.712     6.3     313.66      9.2
Citrates        60.197      23.4    45.28    22.4
Total            484.909     8.1     358.94    10.7
Source: CNCIC Chemdata