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China Citric Acid Industry Faces Challenges in 2010 On December 13, 2010, a notice from China commercial department, informs that Chinese citric acid may face anti-dumping investigation again. So far, Brazil Citric Acid Industry Association has applied for an anti-dumping investigation into Chinese citric acid, and Brazil government considers that this application matches the condition for filing a case. According to Corn Products China News, published by CCM International Limited, many Chinese citric acid manufacturers are discussing how to cope with this issue. An expert from Citric Acid Association of China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) revealed that the association was figuring out an efficient way to deal with Brazil’s antidumping investigation with some Chinese citric acid producers. In 2008, EU and the US separately ran anti-dumping investigation into Chinese citric acid, which finally brought a negative effect on the export to these two countries. However, due to market explosion in other countries, such as India, Thailand, and Vietnam, the total export volume still kept increasing in China year by year. During January and October in 2008, 2009 and 2010, the total export volume was 532,101 tonnes, 542,951 tonnes, and 590,786 tonnes respectively. Based on China customs’ data, China exported 19,642 tonnes of citric acid to Brazil from January to October this year, which only accounts for a small proportion of total export volume. However, what’s the effect on Chinese citric acid industry if Brazil passes the increase of duty on Chinese citric acid? “ It is no double that it will have influence on export to Brazil, though Brazil is still a small market for Chinese citric acid industry so far ” CCM’s researcher released. Manufacturers may have many methods to tackle the challenges, like setting up factories abroad, or doing entrepot trade. But some experts hold opposite opinion that manufacturers should further explore domestic market, instead of depending on exportation. Nevertheless, the point is that domestic market needs a long time for Chinese citric acid industry to turn around this situation. Because although at present domestic food and beverage industry have been developing fast, the demand for citric acid from abroad is still much larger.” said an expert from CCCMC. Except pressure from outside, domestic regulation is also a key factor for the development of Chinese citric acid industry. Shanxi Zuyuan Industry and Trade Co., Ltd. and Qinyang Xinxing Chemical Co., Ltd. were eliminated from the manufacturer list for their backward industrial capacity in September 2010, as well as the requirement for environmental protection. Besides, according to the latest issue of Corn Products China News, Chinese corn deep-processing industry will face to be checked and regulated again, which may impact domestic citric acid industrial adjustment and citric acid global market. At present, Chinese citric acid is estimated to reach 800,000 tonnes, accounting for 70% of the world total volume, and 73% of it is for export. About CCM CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/ Export Analysis all through its new proprietary product ValoTracer. Please visit for more information or contact CCM International, Ltd. Guangzhou CCM Information Science & Technology Co, Ltd. 17th Floor, Huihua Commercial & Trade Mansion No, 80 Xianlie Zhong Road, Guangzhou 510070, China © 2010 Guangzhou CCM Information Science & Technology Co., Ltd

China Citric Acid Industry Faces Challenges in 2010