"Description: This is the third edition report, which is updated on the basis of second edition. The first edition and the second edition were finished in 2006 and 2007, respectively. The report provides readers with a comprehensive overview about China’s fumaric acid industry. In this report, production, export & import and consumption are the emphases, which will offer readers good understanding about the capacity, output, manufacturers, trade as well as the application situation in 2007. Apart from that, the report also introduces briefly the technology, raw materials, price, etc. In the technology section, the most popular method is described. In the price section, the quoted price from producers has been reviewed, and the current is summarized. Moreover, the factors leading to price changes are discussed, from the aspects of demand & supply, raw material and product quality. Future forecast and conclusion is the soul of this report. All the active producers of fumaric acid are introduced in detail. "

1. Production and Market of Fumaric Acid
in China
- The Third Edition
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd
Guangzhou, P. R. China
April 2008
Copyright by Guangzhou CCM Information Science and Technology Co., Ltd. (P. R. China)
Any publication, distribution or copying of the content in this report is prohibited.
Website: http://www.cnchemicals.com
Tel: +86-20-3761 6606
Fax: +86-20-3761 6968
Email: econtact@cnchemicals.com

2. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Description:
This is the third edition report, which is updated on the basis of second edition. The first edition and the
second edition were finished in 2006 and 2007, respectively.
The report provides readers with a comprehensive overview about China’s fumaric acid industry. In
this report, production, export & import and consumption are the emphases, which will offer readers
good understanding about the capacity, output, manufacturers, trade as well as the application
situation in 2007. Apart from that, the report also introduces briefly the technology, raw materials, price,
etc. In the technology section, the most popular method is described. In the price section, the quoted
price from producers has been reviewed, and the current is summarized. Moreover, the factors leading
to price changes are discussed, from the aspects of demand & supply, raw material and product quality.
Future forecast and conclusion is the soul of this report.
All the active producers of fumaric acid are introduced in detail.
Main content:
No. Content Page
0
I Technology development 8
I-1 Current fumaric acid production technology 8
I-2 Comparison of Chinese and foreign technologies 10
II Fumaric acid market in China 11
II-1 Global overview of fumaric acid 11
II-2 Current production situation 12
II-3 Raw material supply situation 17
II-4 Key factors and difficulties influencing production 19
II-5 Competitiveness of Chinese fumaric acid 21
II-6 Historic import and export analysis of fumaric acid 22
II-6.1 Import analysis of fumaric acid in 2003-2007 22
II-6.2 Export analysis of fumaric acid in 2003-2007 27
III Price trends 36
III-1 Historic pricing of fumaric acid 36
III-2 Factors resulting in price changes 38

3. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
IV Consumption pattern of fumaric acid 41
IV-1 Analysis of applications 41
IV-2 Brief introduction to major end use segments 43
IV-2.1 L-aspartic acid 43
IV-2.2 UPR 44
IV-2.3 Food additive 45
IV-2.4 Consumption in other fields 46
IV-3 List of major end users 47
V Future forecast 48
V-1 Driving forces in the industry 48
V-2 Quantities forecasts of market in the next 5-10 years 49
VI Conclusion 51
VII Appendix: Profiles of manufacturers 52
VII-1 Active manufacturers 52
VII-1.01 Jiangsu Changmao Biochemical Engineering Company Limited 52
0
VII-1.29 Zhejiang Qing'an Chemical Co., Ltd. 96
VII-2 Manufacturers who have stopped production 97
VII-2.01 Jiangsu Zhongteng Chemical Co., Ltd. 97
VII-2.02 Shandong Qilong Chemical Co., Ltd. 99
Executive summary:
(Note: The following summary is based on the situation in 2008 and maybe different to what it is
nowadays. Please be noted.)
- Technology
At present, there are two methods to produce fumaric acid. One is chemical combination method and
the other is biological combination method. Chinese fumaric acid producers all use the former one.
There are three raw materials for fumaric acid production in China and they are benzene, acid liquor
and dregs generated in the production of maleic anhydride and acid liquor generated in the production
of phthalic anhydride.
……….
- Production
China is one of the largest producers of fumaric acid in the world. Currently there are 42 active
producers of fumaric acid in China with the total capacity of xxxxt/a as of March 2008 amounting to
over one third of the global capacity.

4. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Fumaric acid industry has been developing rapidly in China with the CAGR of xx% in 2003~2007, and
the output reached xxxx tonnes in 2007.
XX Company is the largest fumaric acid producer in China, whose capacity reaches xxt/a as of March
2008. The quality of fumaric acid from XX company and XX company is better than that in other
domestic producers. Accordingly their fumaric acid quotations are higher than others.
……….
- Import & export
The import volume of fumaric acid in China is small and it has kept decreasing. In 2007, China
imported xxxx tonnes fumaric acid, only xx % of China’s import volume in 2006.
…………
The export rebate rate for fumaric acid has been adjusted from 13% to 5% by Chinese government
since July 1st, 2007.
China’s export volume of fumaric acid has been increasing rapidly with the CARG of xx% during
2003~2006. The export volume of fumaric acid amounted to xxxx tonnes in 2006, a historical record
and over four times more than that in 2003. But in 2007, China’s fumaric acid export volume decreased
by xx% from that in 2006, falling to xxxx tonnes.
………..
- Consumption
In recent years, the apparent consumption of fumaric acid has been continually increasing in China. In
2003, the apparent consumption was only xxxx tonnes, but it increased to xxxx tonnes in 2007, with
the CARG of xx%.
Fumaric acid is mainly used to produce L-aspartic acid and UPR in China.
Character of CCM' Report:
The aim of this report is to provide powerful assistance to the strategy group and the management
team in making correct decision as how to penetrate the ever-increasing China market and how to
catch the maximum commercial opportunities. The report is formulated independently by CCM’s
professional market researchers, based on the first-hand and primary data which are analyzed by
scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and
presented in a logic way.
Sample pages：

5. 1
V Future forecast
V-1 Driving forces in the industry
- Market demand
Demand for fumaric acid has increased rapidly since 2001, but the annual output didn’t change
until 2003, being only about 25,180 tonnes, which led to a large demand gap in that year. In
the end of 2004, the average price of fumaric acid was very high, reaching RMB12,000/t,
because its output couldn’t meet the market demand.
To pursue high profit, many Chinese producers invested in fumaric acid industry. Most
installations of fumaric acid were built and put into production. That is why the capacity of
fumaric acid increased rapidly after 2003. In 2006, its capacity reached 105,000t/a. The
average increase rate has surpassed 30% since 2003. Fumaric acid industry develops rapidly,
but it still can’t meet the market demand.
With the development of downstream industries including L-aspartic acid, UPR and food
additive, the market demand will be a key factor driving the fumaric acid industry to develop in
the future.
- Raw material
Benzene
As a starting raw material for fumaric acid production, benzene directly influences the
production cost of fumaric acid. In recent years the price of benzene kept increasing which
was unfavorable to domestic fumaric acid industry.
Acid liquor generated in the production of maleic anhydride or phthalic anhydride
Fumaric acid production is also relative with the production of maleic anhydride and phthalic
anhydride because to some domestic producers, fumaric acid is only one byproduct of maleic
anhydride or phthalic anhydride. If they stop production of maleic anhydride or phthalic
anhydride, they will have no acid liquor generated in the production of maleic anhydride or
phthalic anhydride to satisfy their fumaric acid production.
- Technology innovation
At present, Chinese fumaric acid producers all use benzene oxidized method. The method will
be used a long time in future though it has some disadvantages. Chinese producers are to
improve the technology and equipment, which can promote the capacity and quality of fumaric
acid.

6. 2
0
500
1,000
1,500
2,000
2,500
Jan-07
Feb-07
M
ar-07
Apr-07
M
ay-07
Jun-07
Jul-07
Aug-07
Sep-07
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ct-07
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ov-07
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ec-07
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0.20
0.40
0.60
0.80
1.00
1.20
1.40
Quantity Price
And in the long-term view, benzene oxidized method will be replaced by N-butane oxidized
method which is widely used in developed countries. The N-butane oxidized method is the
development trend, as it is more advanced. It has the advantages of high efficiency, high
output and non-pollution.
- Domestic policies on fumaric acid industry
Governmental policy will have great influence on domestic fumaric acid industry.
Export rebates decrease
Government policy restricting the production of producers who seriously pollute the
environment
Since the production of fumaric acid has high pollution, implementation of these policies in
China can promote the structural adjustment of the industry. The companies whose production
scales are too small to reach the requirement will be closed down, and those companies,
whose cost is higher than others for their insufficient resource, low-tech or backward
management, less competitiveness in the market, will be defeat by others and phased out.
V-2 Difficulties in fumaric acid industry
- The adjustment of export tax rebate
Since Jul. 1st
2007, export tax rebate on fumaric acid has been reduced from 13% to 8%,
which causes fumaric acid exporters to raise price to ensure their profit, thus the
competitiveness of China’s fumaric acid has been reduced in the overseas market.
After Jul. 1st
2007, the export price of fumaric acid from China increased by USD0.05/kg~
USD0.1/kg. Correspondingly, the export volume from Jul.2007 to Dec.2007 decreased by
1,645.097 tonnes year on year.
Figure V-2-1 Export price and export volume of fumaric acid in 2007(Price: USD/kg Quantity:
tonne)

7. 3
- The depreciation of US dollar
During the whole year of 2007, the US dollar has depreciated by 7% calculated by RMB, which
means that the profit of fumaric acid export has shrunk. At present, most exporters are willing
to export fumaric acid with the payment of RMB and the depreciation of US dollar acts as a
disincentive to China’s fumaric acid exporters.
Figure V-2-2 RMB/USD Exchange Rate in 2008~2012
V-3 Quantities forecasts of market in the next 5-10 years
Our forecast is based on economic theories and relative forecast technologies in econometrics
and, a model, established in system dynamics technology with Vensim® software by CCM, is
used to conduct our forecasts on the development of fumaric acid in China (2007-2011).
System dynamics, which has been applied in many research fields, is a useful methodology &
tool for policy analysis and assistant decision-making. The following items are integrated in the
model:
Relative data in the past
Industry chain of fumaric acid
Domestic polices on fumaric acid at present and in future
Driven forces discussed in the above
CCM’s understandings on fumaric acid industry
The output of L-aspartic acid may increase slightly in the future 5 years, CCM predicts that
output of L-aspartic acid will increase to 87kt in the year 2012, with the CAGR of 12.2% from
2008 to 2012.
- Production
In the next 5 years, the output of fumaric acid will keep a rising trend, but its CAGR will not be
6.80
6.90
7.00
7.10
7.20
7.30
7.40
7.50
7.60
7.70
7.80
7.90
Jan-07
Feb-07
M
ar-07
Apr-07
M
ay-07
Jun-07
Jul-07
Aug-07
Sep-07
O
ct-07
N
ov-07
D
ec-07
Jan-08
Feb-08