Suppliers believe that at least minor price hikes will be implemented despite good supply and strong competition in Western Europe.
Following a significant price increase for corn, potato and wheat starch in the fourth quarter of the year, starch manufacturers are pushing for another price hike for deliveries in the first quarter of 2013. Starch suppliers explained they needed to raise sales price to keep up with increases in raw material costs.
In spite of good supply and stiff competition in some market segments and regions, most EUWID-sources on the supply-side of the market are expecting to see at least minor mark-ups pushed through. A row of new price contracts for deliveries in the first quarter of 2013 already existed. With regard to the outstanding contracts, the general aim was to reach an agreement by Christmas, they explained.
The starch industry is looking at the development in the paper industry with a certain amount of uncertainty. The structural change in graphic paper was not yet coming to an end and the situation in the packaging sector also seemed unclear due to the state of the general economy, market players stated. It seemed as if paper mills’ ordering activity was pointing at least to extended temporary stoppages.
⇒ This article is an excerpt from EUWID's quarterly report on the native starch market. The EUWID Price Watch Western Europe Native Starch for the fourth quarter 2012 will be published in EUWID Pulp and Paper no. 51 on 19 December.
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