June 7, 2007
China vitamin C manufacturers face stiffer EU regulatory controls
According to the Customs Office of northern China's port city of Tianjin, January-April vitamin C products shipped from the port were at 11,000 tonnes, valued at US$36.6 million. These were up 14.6 percent and 16.6 percent respectively compared with the same period in 2006. Average export price was US$3.40/kg, up 1.7 percent on-year.
Export deliveries of vitamin C products from Tianjin port to EU member countries and the US increased by a respective 13.8 percent and 6.4 percent to 5,110 tonnes and 2,380 tonnes compared with corresponding figures for Jan-Apr 2006. About 69 percent of vitamin C products exported via Tianjin port was shipped to the EU and US.
Meanwhile, data released by China's Customs General Administration showed that average export prices of vitamin C products for the Jan-Apr period had increased by 4.6 percent on-year.
Determined to shore up vitamin C prices, which had slackened in 2006 to record low levels of past years, major manufacturers in China had halted production at different periods during the year and their efforts soon paid off, as moderated supplies helped prices to recover.
Just as Chinese producers were looking towards better export prospects, a new EU regulatory control on chemical products looks set to present some obstacles.
With REACH (stands for Registration, Evaluation, Authorisation and Restriction of Chemicals), which came into force on Jun 1 this year, exporters of pharmaceutical raw material products to the EU will face more stringent tests on product safety.
All costs associated with the testing and evaluation of products will be borne by exporters. Small manufacturers hoping to make inroads into the EU will face a big hurdle.
Although the EU had taken steps to cut administrative burdens on manufacturers of chemical products, cost of production will still rise with this initiative. Chinese exporters of vitamin C products to the EU will be affected as well.
