Sodium gluconate is mostly used in the field of medicine, it can maintain the balance of acid and alkali in the human body. Furthermore, the material can be used as a surface cleaning agent for metals or glass and as water reducing agent and retarder in the building industry. Sodium gluconate is also an efficient set retarder and a good plasticiser and water reducer for concrete, cement, mortar and gypsum.
China has been one of the major SG suppliers in the world. The rapid production expansion in the past 10 years greatly boosted China's total Sodium gluconate output. In recent years, several enterprises have entered the sodium gluconate market. And the production has concentrated in major corn-producing areas. However, the production concentration rate is not high in China. China's sodium gluconate industry has faced a slowdown and entered an integration phase.
In 2017, the capacity, output and apparent consumption of sodium gluconate in China decreased while the price and export volume of it increased due to increasing market price of corn and tightening environmental regulations.
The ex-works price of sodium gluconate in China increased in H2 2017 boosted by the increasing market price of corn.
Sodium gluconate industry in China was first started in the 1980s. However, the industry did not enter its fast expanding stage until the 2000s. Fast expansion of sodium gluconate capacity and the lack of demand from downstream had led to overcapacity. Starting 2011, China’s sodium gluconate industry has entered its structural reforming stage. During 2015 to 2017, the capacity of sodium gluconate in China reduced at a CAGR of 5.20%.
Both the output and consumption volume of sodium gluconate in China decreased in 2017 due to increasing market price of corn and tightening environmental regulations. Meanwhile, the ex-works price of sodium gluconate surged affecting the increasing production cost and shrinking supply of sodium gluconate. In the coming five years, the growth of sodium gluconate industry in China will be limited by the fluctuations of corn market price and environmental regulations on sodium gluconate production. It is necessary for sodium gluconate industry participants to keep track on the changes of both the market price of corn and China’s environmental regulations on commercial production.
Glucose is the essential raw material in sodium gluconate production. It is commonly commercially manufactured from corn starch in China. The market price of corn is the major influencing factor of the production cost of both cornstarch and sodium gluconate. The Chinese government lowered the purchasing price of corn for temporary storage in 2015 and cancelled the purchasing policy of corn in the following year due to excessive corn inventory and unreasonable high domestic market price of corn. The market price of corn started to decrease in H2 2015 and hit the periodic low in Jan. 2017. In the following year, domestic corn market price rebounded as the supply of corn decreased in the result of both shrinking corn planting area and diminishing corn inventory.
Affected by the increasing price of corn and the tightening environmental regulations, the output of sodium gluconate in China dropped from 629,000 tonnes to 583,000 tonnes at a growth rate of 7.31% during 2016–2017. Meanwhile, the apparent consumption of sodium gluconate in China reduced by 12.73% year on year in 2017.
The export volume of sodium gluconate from China was on a continuous growth during 2012–2017, at a CAGR of 14.59%. China exported sodium gluconate to 89 countries and regions in 2017. India, Turkey, the United Arab Emirates, Japan and Taiwan Province were the top five destinations of China’s sodium gluconate exports by volume. In 2017, Shandong Fuyang Biotechnology Co., Ltd. continued to rank first among all Chinese sodium gluconate exporters, exporting 36,777.576 tonnes of sodium gluconate.
About the report
CCM has recently published the new report Production and Market of Sodium Gluconate in China.
This report aims to study the current sodium gluconate industry and forecasts the market by the end of 2022. This market research provides detailed analysis on the factors influencing the development of sodium gluconate industry in China, as well as a current and historical trend of the industry. Market drivers, restraints, opportunities and relative policies can be found in this report.
The research is based on data collected via diverse sources. The primary sources include interviews with industry experts, key producers, key traders, key raw material suppliers and key end users of sodium gluconate. Various secondary sources include published magazines, journals, government statistics and CCM’s database, etc. Data obtained from various sources have been combined and cross-checked to ensure that this report is as accurate and methodologically sound as possible.