Improved supply puts a halt to upward price trend on the native starch market in Europe

Source: EUWID
03 Jul 2018 − 

The balance between supply and demand has improved on the European market for wheat and corn starch. Buyers therefore have a wider range of options available for sourcing their volumes.

Native starch producers have been largely unsuccessful with their plans to introduce another price hike at the beginning of the third quarter; Negotiations on third quarter deliveries for corn and wheat starch will likely result in prices moving sideways in many contracts.

It was possible to achieve small mark-ups, depending on the starting level, in the negotiations that took place early, according to industry representatives. However, with the overall price level high, marginal mark-downs for cereal starches are also apparently being discussed in a few instances. Observers say there are barely any differences between the price levels of native wheat and corn starch on the market in Europe.

Industry representatives and market observers all agree that this does not necessarily signal a fundamental shift in the starch market and that the development is likely to be temporary. Demand, especially from packaging paper producers, remains high and will continue to grow, not least because of the production capacity being added to the market.

This article is an excerpt from EUWID's quarterly report on the markets for paper chemicals, fillers and pigments in Western Europe. EUWID subscribers will find the EUWID Price Watch Native Starch Q2 2018 in EUWID Pulp and Paper no. 27.2018.

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