In the first half of June 2025, Potato Starch prices in the Asian market continued to decline, following a sharp drop in May. The downturn was driven by oversupply, weak downstream demand, and reduced export interest. High inventory levels and cautious buying behavior added to the bearish trend. However, experts anticipate a price rebound in the second half of June, supported by seasonal demand, rising freight costs, and strategic stockpiling.
In the Asian market, Potato Starch prices continued their downward trend in early to mid-June 2025 after experiencing significant declines in May. The consistent price decline was predominantly due to continued oversupply conditions, slow-down stream demand from key segments, and weakening export demand, all of which collectively weighed on overall market sentiment across the region.
According to ChemAnalyst, in China, May witnessed a sharp decline in Potato Starch prices, driven by elevated inventory levels and stagnating demand. Although domestic manufacturing activity improved marginally from April, the corresponding increase in production volumes further exacerbated stockpiles. This supply glut was compounded by a steep fall in Potato Starch import prices from European suppliers, which pushed down local market values. Prior to Labor Day holidays and scheduled maintenance shutdowns in some plants, suppliers had ramped up stockpiling in anticipation of temporary disruptions—only to be met with weak offtake. To mitigate inventory build-up, suppliers were forced to cut prices aggressively. Additionally, while temporary tariff relief between China and the U.S. improved external trade sentiment, it failed to stimulate meaningful recovery in demand. The depreciation of the U.S. dollar against the Chinese yuan also impacted export competitiveness, leading to a reduced flow of international inquiries, and limiting the export market’s ability to absorb surplus supply of Potato Starch.
In India, the market was similar to China, with big price drop due to increase in domestic production. Government initiatives to boost local production and self-sufficiency led to increase in supply of Potato Starch. But demand was muted. Indian manufacturing was sluggish with production stagnant and weak new orders. As a result, Potato Starch demand from food processing and textiles sector declined. Despite currency fluctuations (USD appreciation which made India more competitive in exports) global market saturation prevented any meaningful export growth. Inventory with distributors were high and overseas orders were marginally down which further dampened the Potato Starch market.
Across the region, Potato Starch buyers were cautious with the economic uncertainty, ample supply and soft consumption trend. Many delayed purchases hoping for deeper discounts or waiting for stronger demand signals. Potato Starch exporters also faced competition from low cost European shipments and lost pricing power and overall market was soft.
According to market sources, Potato Starch prices in Asia will increase in 2nd half of June 2025. Shipping rates are expected to rise due to reduced vessel availability and export cost will go up and suppliers will prioritize regional sales. Buyers will also accelerate procurement to lock in prices before the price increase and some will stockpile strategically to hedge against supply chain risk in the coming quarter. All these will drive the price up for Potato Starch in the coming weeks.
