Formerly China’s largest soybean importer, Shandong Chenxi Group, filed for bankruptcy due to its inability to pay off debts…Full Article: Sina Finance July 2018
- On 6 July 2018, China increased the import tariff rate for U.S. soybeans to 25%. The increase was in retaliation to similar tariff increases by the U.S. on Chinese goods.
- In October 2017, the sixth wave of H7N9 began in China.
- In August 2017, Shandong Sunrise Group resold four to five soybean shipments (~260,000 MTs worth ~USD 105 million) at a loss due to low margins and high domestic stocks. It was speculated that some Chinese banks refused to issue Letters of Credits for soybean importers owing to repayment concerns.
- In March 2017, researchers at the University of Hong Kong confirmed a mutation in H7N9 strain of avian influenza that enhanced viral acquisition and replication in mammalian and human cells.
- In mid-2014, China’s soybean market was suffering from poor crushing margins which forced some importers to either default on their soybean contracts or resell at below market rates. At the time, Shandong Sunrise Group stated it would honor its soybean contracts despite facing approximately CNY 200 million (USD 32 million) in losses.
- In March 2013, Low Pathogenic (LP) “Asian H7N9” was first reported in China. The second wave of H7N9 in China peaked during January and February 2014, causing the livestock industry to cut demand for animal feed.
- Headquartered in Rizhao, Shandong Province, Shandong Sunrise Group is a subsidiary of Shandong Chenxi Group (山东晨曦集团有限公司). Sunrise is a major Chinese importer and processor of petrochemical products and soybeans. In 2006, China’s Ministry of Commerce granted Shandong Sunrise Group import licenses for fuel oil. The company also operated five soybean processing facilities including crushing plants in the counties of Ju and Qihe, as well as Shouguang, Shandong Province. From 2014 to 2015, Shandong Sunrise Group accounted for approximately 10% to 12% of China’s total soybean imports. The company also trades in palm oil.
Hong Kong Trends