Native starch prices rise amid high demand and reduced supply

Raw material costs and strong demand spur price hikes
for native wheat starch. Copyright: EUWID
07 Jul 2021 − 

Prices for native starch have been on a downward trend since early 2019. Since the second quarter 2021, however, there have been signs of a trend reversal, especially for wheat and corn starch.

Manufacturers of native wheat and corn starch started implementing higher prices in quarterly contracts and for deliveries as of April 2021. Now, they are set to increase prices in half-year contracts, asking up to 200 €/t more for deliveries as of July.

Against the background of high business activity and new corrugated case material and corrugated board capacities in Europe, demand for starch products shot up in spring 2021 and still remains high in June, according to EUWID sources. Producers’ order books are reportedly full and volumes are being allocated in a few cases. Availability of native wheat starch market was particularly affected not least due to a series of scheduled and unscheduled production stoppages.

Buyers consider the current situation on the starch market market in Western Europe to be overheated and expect it to calm down towards the end of the year.

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