For the Quarter Ending June 2023
North America:
The US corn starch market encountered volatility during the second quarter of 2023. The initial two months of the quarter witnessed consistent price escalation attributed to disruptions in supply and demand dynamics. A moderate shortage of corn starch in domestic warehouses ensued due to heightened demand from end-user suppliers, consequently driving market prices upwards. Following the abolition of the zero-resistance policy against COVID-19, trade between Asia and the United States increased. Moreover, rising production costs of corn starch, fueled by escalating corn and input prices, added to the upward pressure on prices. However, by early June, prices started declining due to weakening demand, leading to surplus inventory and prompting suppliers to implement price reductions. The ongoing economic instability in the US coupled with rising global inflation rates contributed to reduced corn starch demand. Nevertheless, distributors remained cautious about placing significant orders due to the descending price trend. Key market players are anticipated to further reduce prices in the upcoming months. The price of feedstock corn also decreased due to supply surplus and heightened production. Distributors and suppliers refrained from replenishing their inventories as they worked to clear the surplus.
Asia:
In the Asia Pacific region, the Corn starch market in Q2 2023 displayed a mixed trajectory. Initially, from the beginning of Q2 until its midpoint, the market experienced notable price inflation owing to heightened domestic and international orders. Amplified production rates aimed at replenishing inventories and meeting the robust market demand characterized this period. Supply constraints of Corn starch resulted from factors such as production disruptions in China and the ongoing conflict in Ukraine, further propelling price escalation. China's exports exceeded expectations due to consistent inquiries from both domestic and international markets. However, as mid-Q2 approached, prices started fluctuating and witnessed a significant decline. This deflationary trend was primarily attributable to reduced sales in final consumption sectors, coupled with the absence of new inquiries from domestic and overseas suppliers. Demand dwindled in downstream industries encompassing food preservatives, plasticizers, and cosmetics in recent months. To alleviate an overstocked inventory, suppliers had to lower prices.
Corn Starch Prices:
https://www.chemanalyst.com/Pricing-data/corn-starch-1431
Europe:
The European Corn starch market appreciated in the second quarter of 2023. The quarter commenced with price surges driven by the gap between supply and demand. This price hike was further spurred by a surge in domestic inquiries. Despite this, dealer inventories proved sufficient to meet gross demand for the initial month. The Euro's appreciation against the US Dollar played a role in boosting demand for Corn starch. Additionally, OPEC+ members' unforeseen production cut decisions positively impacted the market landscape. Elevated energy, production, and transportation costs all contributed to sustaining market strength. The Euro's strength against the US Dollar, however, could have implications for German exports and imports. While making German exports pricier for foreign buyers and potentially reducing sales, it could make imports more affordable for German consumers and augment domestic inquiries. Inflation in Europe registered a decline to 7.4%. The drought-induced decrease in the US corn crop, as the United States is a major corn producer, has led to reduced corn starch supply, thereby elevating prices. Speculative trading has also contributed to price escalation, driven by the anticipation of continued price hikes. It is anticipated that prices will remain elevated as drought conditions in the United States are projected to persist for several months.
About Us:
ChemAnalyst is a subsidiary of TechSci Research, which was established in 2008, and has been providing exceptional management consulting to its clients across the globe for over a decade now. For the past four years, ChemAnalyst has been a prominent provider of Chemical commodity prices in more than 15 countries. We are a team of more than 100 Chemical Analysts who are committed to provide in-depth market insights and real-time price movement for 300+ chemical and petrochemical products. ChemAnalyst has reverberated as a preferred pricing supplier among Procurement managers and Strategy professionals worldwide. On our platform, we provide an algorithm-based subscription where users can track and compare years of historical data and prices based on grades and incoterms (CIF, CFR, FOB, & EX-Works) in just one go.
Contact Us:
ChemAnalyst
420 Lexington Avenue, Suite 300,
New York, NY, United States, 10170
Call +1 3322586602
Email:
[email protected]
Website:
https://www.chemanalyst.com
You need to be a member of On Feet Nation to add comments!
Join On Feet Nation