„ROEPER SIEN“ *
NEWSLETTER JUNE 2016
* anc Germ ient low an fo „Roep rm for er‘s
In this issue: Dear Business Friends
Market reports 2-4 Hydrocolloids Market reports 5 Seaweed Products Market reports 6 Waxes Markt reports 7 Menthol and Carmine Markt reports 8 Resins Markt reports
C.E. Roeper just celebrated its 125th anniversary. On May 2 nd in 1891, Conrad Emil Roeper founded his trading business for natural raw materials. Since then, business has time and again changed significantly as some of the key products were replaced by synthetic products (e.g. Indigo). However, our company has succeeded in reinventing its business concept again and again over the decades, which allowed Roeper to stay successful and grow even in difficult times. Since the beginning and over 4 generations, Roeper has been an owner-operated business, which is anything but ordinary, particularly in today’s world. Members of the Gerrens family have been managing Roeper over 3 generations since 1918. But we also owe a great deal of our success to the commitment of our employees. Therefore I would like to use this opportunity to thank not only our business friends and partners for their support and cooperation, but also all our employees in Germany, Poland, Moscow and China! Best regards
Carsten Gerrens
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Resins & Balsams
Markt report Psyllium
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Markt report Liquorice
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Exhibitions Inside Roeper
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Hydrocolloids KONJAC
AGAR AGAR
The market situation for Konjac has unfortunately become worse. There is only very little raw material left from the last crop, so we strongly advise customers to cover their demand without delay. We expect prices to increase until material from the new crop at the end of November to December 2016 will be available.
Gelidium Unfortunately we cannot report on any change in the market situation. Raw material is still very scarce, consequently prices remain on the high side and lead times are often longer than usual. Customers for Gelidium Agar Agar should schedule their demand well in advance and place orders in due time. Gracilaria The market situation for Gracilaria Agar Agar has not changed, either – however in this case in a positive sense. Sufficient raw material is available and prices are stable.
CARRAGEENAN Characteristics of Carrageenan Carrageenan forms the frame substance of red algae, which can be found at the shores of the North Atlantic and the Pacific Ocean. For production of Carrageenan the algaes are harvested, dried and extracted with slightly alkaline water. Carrageenan is used as a thickener and gelling agent in the food industry. It serves as stabilizer for proteins and floating particles, is heat- and freeze-thaw stable. Carrageenan is used for a large variety of products: Ketchup, Creme soups, Cacao milkshakes, desserts, puddings, glazings, meat injection, sausages and fillings for bakery products. Our application technologist, Hans-Juergen Arlinghaus (
[email protected]) will be pleased to provide further information upon request!
Contact: Katharina Albano, Phone: +49 40 73 41 03 —59, Email:
[email protected] 2
Hydrocolloids XANTHAN GUM
GUM ARABIC Sufficient quantities of Arabic Seyal and Arabic Senegal are available in the country of origin. After prices for Seyal had gone up to a peak last year, they have decreased down to the level of previous years during the last couple of weeks. Prices for Arabic Senegal were rather stable with a slight downward tendency. There will be a certain time-lag until spraydried material will be affected by these price tendencies.
The current market situation gives no reason to complain as prices are stable and sufficient material is available.
The National Bank has increased the value of the local currency towards the Euro and USD last month, which could, in the medium term, lead to a price increase of Gum Arabic. Prices for material from Nigeria remain significantly higher.
GUM TRAGACANTH Most recent weather reports from the country of origin brought good news of substantial rainfalls in the desertic regions where Gum Tragacanth is collected. This gives reason to hope that local authorities will now issue more collection licenses for higher quantities. The tapping of the bushes will begin during the next couple of weeks, but reliable information on the result of the crop will only be available 1 – 2 months later. And of course there is always the danger of sudden late rainfalls that could partly destroy the crop. Quantities available on the market are still limited as there is no carry-over-stock in the country of origin from last year. Prices are on a high level, which will only change if this year’s crop will have a positive result. A strong Euro would also have a positive influence on prices, though. Arrival of the 2016 crop in Europe is not due before November to December.
Contact: Björn Stamer, Phone: +49 40 73 41 03 —23, Email:
[email protected] 3
Hydrocolloids Guar Gum The market situation for Guar Gum is very stable at the moment and although demand is currently quite vivid, prices are stable at a moderate level.
LOCUST BEAN GUM
The usual speculations on the forthcoming Monsoon rains, which are crucial for the turnout of the next crop due for October / November, are the only reasons that could lead to minor price fluctuations during the next couple of weeks.
The next crop is only due for September this year. From today’s point of view, we do not expect any significant changes in the market for Locust Bean Gum and its currently very stable prices.
SODIUM ALGINATE Given that sufficient raw material is available at the moment and that prices are currently on a quite low level, the market situation for customers is a very good one actually. We will be pleased to submit an up-dated offer!
TARA GUM For many months, manufacturers of Tara Gum have been persuing a very aggressive price policy. This of course provides an excellent opportunity to fill up stocks of Tara Gum. Only a few years ago customers would not have dared to dream of such low prices.
Contact: Roy da Silva, Phone: +49 40 73 41 03 —32, Email:
[email protected] 4
Seaweed Products ASCOPHYLLIUM NODOSUM / SEAWEED MEAL The market situation for Seaweed Meal remains very tense. The crop usually begins in April, but this year there is a delay until June, as the seaweed is growing so slowly. This is mainly due to the fact that the sea is still too cold at the coasts of Northern America. Consequently, first deliveries of this product to Europe will not be effected before July. Furthermore, a price increase has already been announced. Higher prices are due to strong demand and scarcity of the raw material, high transportation costs (as the material is more and more harvested at far reaches of the Northern coasts) and last but not least increasing energy costs.
SPIRULINA Since April 1st 2016, EU-guideline 2015 / 1933 regarding maximum content of polycyclic aromatic hydrocarbons has come into effect. It applies to a variety of products, also food supplements. After intense cooperation with our suppliers, we are pleased to inform our customers that we are now able to offer Spirulina Platensis qualities that comply with the above mentioned EUguideline. Please do not hesitate to contact us for further information.
Contact: Björn Stamer, Phone: +49 40 73 41 03 —23, Email:
[email protected]
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Waxes BEESWAX Prices for beeswax of Chinese origin remain on a high level, premium qualities are still scarce. The market situation for African beeswax is more positive: Prices are currently stable and sufficient material is available.
Contact: Benjamin Neumann, Phone: +49 40 73 41 03 —93, Email:
[email protected]
CARNAUBA WAX The raw material price itself is stable at the moment, so any of the current price fluctuations are due to the exchange rate instability. After the impeachment against president Dilma, the vice president is already working on an action plan to fight the economic crisis in Brazil. This is expected to have a positive effect on the market and also the exchange rate. Furthermore, a stronger Real is expected. This will, however, mean a higher price for Carnauba Wax. At the moment, we still dispose of sufficient stocks in our Hamburg warehouse. Please do not hesitate to contact us for an updated offer.
Contact: Isabelle Perret, Phone: +49 40 73 41 03 —53, Email:
[email protected] 6
Essential Oils / Colorants Menthol Menthol business has become more vivid recently and prices for material from China have slightly increased while prices for material from India are stable. We do not expect any significant changes on the Menthol market within the next 1 – 2 months.
Contact: Benjamin Neumann, Phone: +49 40 73 41 03 —93, Email:
[email protected]
Carmine Cochineal prices have continued to decrease to a current level of 36 – 40 USD p/ kg. Consequently, Carmine prices have also decreased. The price for Carmine Lake 52 % is around 125 – 135 USD p/kg at the moment. However, the market situation remains tense, because prices may start to increase quickly again due to strong demand.
Contact: Cueneyt Oezbay, Phone: +49 40 73 41 03 —26, Email:
[email protected] 7
Resins Shellac Recently, prices for Shellac had slightly decreased. But after the new crop has been damaged by great heat in the country of origin and a crop shortfall is thus expected, prices have become firm again. We still dispose of sufficient stocks and will be pleased to submit a competitive offer!
Olibanum
Myrrhae
The recent crop season has unfortunately not improved availability of Gum Olibanum. Material from Egypt, particularly peasize and siftings, remains very scarce, which will involve longer lead times. Most of the material is still being sold to the Far East. Fortunately, material from other origins is available at stable prices.
Prices for Gum Myrrhae remain high and smaller grades are rarely available. Customers should therefore expect longer lead times and schedule their purchases correspondingly.
Contact: Benjamin Neumann, Phone: +49 40 73 41 03 —93, Email:
[email protected] 8
Balsams / Resins Peru Balsam Initial reports from the country of origin suggest that the new crop has started with a delay The currently low market prices for this product have caused a certain lack of interest on the collectors’ part, so shortages in availability may cause a price increase on the short term. It will be crucial to see if there are any carry-over-stocks from last year’s crop, but this is not certain yet.
Dammar / Copal Bad weather conditions with long rainy periods and extreme heat as well as insect attacks on the trees have caused a dramatic crop shortfall. Capacity is only 40 % of what it usually is. Therefore, we expect a price increase of approx. 10 %. Until recently, price increases could be evened out thanks to the strong Euro, but this will not be possible very much longer. Although we have purchased substantial quantities, there may be longer lead times throughout the upcoming weeks and months.
Benzoe Sumatra / Siam Sumatra In our last Newsletter dated back from March 2016 we had already reported on price increases for Sumatra Benzoe. Unfortunately, this trend has continued and further price increases of up to approx. 40 % are generally expected. Due to strong demand longer lead times should be expected as well. Siam Siam Benzoe has been very scarce recently and the new crop has not improved the situation. We were only able to purchase small quantities at extremely high prices. Most of this material has already been sold. We therefore recommend that customers should schedule any demand well in advance.
Contact: Benjamin Neumann, Phone: +49 40 73 41 03 —93, Email:
[email protected]
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Psyllium
There are no carry-over-stocks from last season and cultivation of Psyllium for this season went down by 30 %. Furthermore, part of the crop has been damaged by heavy rains. All these reasons have shattered hopes for stable or even decreasing prices. Additionally, Psyllium business is very vivid at the moment and worldwide demand has significantly increased while crop quantities have decreased. At this stage, 60 – 70 % of the whole 2016 crop are already on the market, which means that it may be very difficult to obtain material from the 3rd quarter of 2016 until the next crop. We recommend that all customers in demand of substantial quantities should conclude contracts without delay in order to ensure availability. Furthermore we have to point out that we can only submit offers valid on a day-to-day basis.
Contact: Benjamin Neumann, Phone: +49 40 73 41 03 —93, Email:
[email protected]
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Liquorice
There are many different applications for Liquorice....So today we will not give “cold” market facts, but a recipe for Liquorice Muffins! Basic Recipe 210 g butter 200 g sugar Mix butter and sugar until creamy. Add 4 eggs (one at a time) Add 210 g flour 9g baking powder Depending on how intense the taste should be, different types of Liquorice can be used. Using Block Liquorice from China with 21 % Glycyrrhizinic Acid content will ensure a very strong Liquorice taste. The blocks need to be sheared into small pieces and can then be added to the dough at a rate of 2 %. A nice side-effect - thanks to sugar crystals - will be a crunchy mouthfeel. Liquorice Paste is another possibility to achieve Liquorice taste, however without the crunchy mouthfeel. By carefully stirring in the paste the muffins will be marbled with dark streaks. Pastes are available with different Glycyrrhizinic Acid contents, so taste intensity is optional. For “Liquorice Beginners” the right dosage will be 2 %, which can be increased if desired. Last but not least we would like to point out that we have sufficient quantities on stock – even for larger projects than just baking muffins….
Contact: Grace Lugert-José, Phone: +49 40 73 41 03 —39, Email:
[email protected]
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Exhibitions / Inside Roeper
As in recent years, we joined our colleagues from our office in Qingdao/ China as exhibitors at FIC in Shanghai. This exhibition has continuously grown in recent years. It is obvious that the Chinese market for industrially manufactured food has experienced a strong development. FIC offers an excellent opportunity to further our sales activities in China as well as an opportunity to meet our long-term Chinese suppliers. Furthermore, an overview of current price developments on the market can be obtained – although some market participants tend to use the exhibition to play prices either up or down …depending on the position of interest….
In April 2016 our former trainee Jonas Reinhardt has been awarded with the “Peter and Emmi Mattfeld Award” for his outstanding academic achievements. Jonas had the best grade average of this year’s graduating class! We congratulate Jonas Reinhardt on this great achievement and feel very proud that one of our trainees has received this award.
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