Starch producers count on high demand for starch products from the paper industry due to capacity expansion in the recycled containerboard segment.
The tension in the market for starch products has eased somewhat towards the end of the first quarter. Contrary to the fourth quarter of 2017, there are no reports of supply bottlenecks. In addition, the starch industry is currently experiencing a slightly accelerated competitive situation, which is making price increases to the extent desired by suppliers difficult.
Nevertheless, the trend towards higher prices for native starches seems to remain unbroken. Suppliers are asking for additional price hikes for deliveries in the second quarter, citing an increasing demand for cereal starches, especially in the packaging paper segment. They refer to the latest capacity expansions in the recycled corrugated case material industry, which are scheduled for 2018, adding up to 1.8 million tpy.