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Low prices and high raw material costs put pressure on native wheat starch suppliers

EUWID: price development for native wheat starch on the market in Europe.
European native wheat starch prices have been tending lower
since Q2 2019 and will continue to point down in delievries in Q1 2021
18 Dec 2020 − 

Native starch producers and buyers have made quite a bit of headway in talks to thrash out prices for deliveries as of january 2021. However, not all contracts have been put to bed by mid-December.

The wheat starch segment continues to experience pressure and buyers and sellers are generally in talks about lowering native wheat starch prices. Experts are complaining that manufacturers are currently facing high raw material costs. As a result, some wheat starch suppliers are raising question marks about the profitability of their operations.

Native corn starch business is more stable and price are rather expected to roll over from December to January.

The majority of paper mills seem to be pushing for six-month contracts. Three-month agreements are still nothing out of the ordinary and are common for smaller and medium-sized orders.

This article is an excerpt from EUWID's quarterly market and price report on the native starch markets in Western Europe.

Find the EUWID Price Watch Native Starch in EUWID Pulp and Paper issue no 51/2020, which is available to our e-paper and print subscribers as of 16 December.

 

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