May 25, 2004

China's Vitamin C Exports Up 23% in 2003

An eFeedLink Exclusive Report

China exported a total 54,000 tons of vitamin C excluding sodium ascorbate in 2003, up by 23% compared to 2002. The total export earnings was recorded at US$330 million, averaging US$6.10/kg, registering a remarkable year-on-year rise of 83.52%.

In 2003, there was a total of 90,000 tons of vitamin C sold globally; China's vitamin C sales accounted for 60% of the global vitamin C market share.

China's vitamin C exports registered three peaks during 2003: firstly, from February to April, secondly from July to September, and lastly, in December. These 3 peak periods reflected the seasonal market demand for vitamin C, and the impact of the change in lower tax rebate for export, which would be implemented after December 2003.       

Of the total China's vitamin C exports in 2003, 3.8% were used in the production of foodstuffs and feed additives, 96% in chemical products, and less than 0.1% in medicinal application. The price difference between vitamin C for the production of food additives and chemical application is marginal, and it is negligible when the prices fall below a certain mark. 

According to a recent survey, 55% of global vitamin C consumption is used in pharmaceutical industry, 35% in food and beverage industry, and 10% in feed industry.

During 2003, China's vitamin C products were mainly exported to the European Union, North America, South Korea and Japan. The total exports to these four regions accounted for nearly 83% of China's total vitamin C exports in 2003. These regions will continue to dominate the world's demand for vitamin C products, whether it is used in the production of food or feed additives.     

China's 2004 vitamin C export faces two primary challenges: firstly, the repercussion of anti-dumping investigations; secondly, the quandary between the expanded production capacity and market demand.
   

The United States is currently a major buyer of China's vitamin C products. Should anti-dumping investigations be instituted against China's vitamin C products in the United States, the losses to China's vitamin C industry would be inevitable.