Potato Starch Prices: During the second quarter of 2023 | ChemAnalyst

North America:

In the second quarter of 2023, the US potato starch market witnessed fluctuations in price and market conditions. The initial two months of the quarter experienced consistent price growth, attributed to intricate supply and demand dynamics. The intensified demand from end-user suppliers created a modest potato starch shortage in domestic warehouses, consequently driving prices higher. Post the termination of the zero-resistance policy against COVID-19, trade between Asia and the United States surged. However, by early June, prices began to decline, marking a significant slowdown in the development of the US potato starch market. The market sentiment grew somber due to declining demand from local downstream industries. Against this backdrop of weakened demand, excessive inventories compelled suppliers to offer products at reduced prices. With falling prices, traders are hesitant to commit to bulk orders, as further price drops are anticipated, primarily driven by major players in the US potato starch market.

Asia:

The Potato starch market in the Asia Pacific region during the second quarter of 2023 displayed a mixed trajectory. The quarter concluded with the price of potato starch valued at USD 1245/MT FOB Tianjin, representing an average quarterly decline of 1.11%. At the onset of the quarter, prices experienced a drop due to a lackluster demand outlook and ample supplies. Midway through the quarter, a substantial price inflation was observed in the Potato starch market, fueled by surging domestic and international orders. China’s exports exceeded expectations due to sustained inquiries from both domestic and international markets. Production rates escalated to replenish inventories and cater to the growing demand. Supply constraints of potato starch arose due to factors such as production disruptions in China and the ongoing conflict in Ukraine, further contributing to price escalation. Nonetheless, by mid-Q2’s conclusion, prices fluctuated and underwent a significant deflation. This price trend was primarily a consequence of reduced sales in final consumption areas, accompanied by the absence of new inquiries from domestic and overseas suppliers. Demand dwindled in downstream industries including food preservatives, plasticizers, and cosmetics in recent months.

Potato Starch Prices: https://www.chemanalyst.com/Pricing-data/potato-starch-1486

Europe:

Volatility marked the European potato starch market in the second quarter of 2023. As the quarter commenced, prices surged due to a gap between supply and demand. This price hike was exacerbated by a surge in domestic inquiries. Despite this, dealer inventories proved sufficient to fulfill gross demand for the initial month. The Euro’s appreciation against the US Dollar further fueled demand for potato starch. This Euro strength could impact German exports, making them more expensive for foreign buyers and potentially curbing sales. Simultaneously, imports could become more affordable for German consumers, potentially driving domestic inquiries. European inflation fell to 7.4%, and unanticipated production cut decisions by OPEC+ members positively influenced the market environment. Elevated energy, production, and transportation costs all contributed to sustaining market strength. However, prices experienced a late-quarter decline, particularly in June. This rapid decline in the potato starch market was influenced by a combination of factors including Germany’s inflation rate dropping to 7.4% in March 2023, the arrival of the monsoon season leading to delayed restocking, and suppliers waiting for further price reductions. Weak demand and increased potato starch stocks caused a domino effect that led to suppliers lowering their asking prices on the German spot market.