For the Quarter Ending December 2022
North America
Overall, corn starch prices in North America were higher than they had been the previous quarter. Stockpiles of domestic corn starch in the US remained low as Q4 2022 approached, and demand for the product increased as the temperature dropped. The market's total supply was constrained. The commodity's domestic market price increased further, supported by demand, rising to USD 615/MT, a gain of 5.1% from the month's beginning. By the end of the year, the price of raw materials, namely corn, had continued to decrease due to efficient stock replenishment in December during harvest season and cautious purchasing on the part of downstream trade organizations. As a result of the reduction of many drawbacks, the market price of corn starch kept declining. On December 30, the average price decreased to USD 608/MT, a decrease of 1.1% from December 1.
Asia- Pacific
Prices for Chinese corn starch varied throughout the fourth quarter. As a result of cost transmission in some parts of the corn starch market in October, which was aided by the continued high price of corn and the small decrease in domestic corn starch inventories, the market's total price for corn starch ran slightly higher. The cost of raw materials was extremely high during November 2022, which was the main cost factor in the production of corn starch. Corn starch demand has increased since inventories were low and market supply was tight. The December price of corn starch was USD 460/MT, a reduction of 2.1%. With the gradual restoration of transportation capacity, import raw material Corn prices somewhat fell, and downstream Corn starch purchases were more cautious. Many negative factors forced certain corn starch makers to lower their prices in response to the corn price.
Europe
In the German domestic markets, Corn Starch producers changed their pricing plans for deliveries in the fourth quarter of 2022. Corn Starch prices traded in November 2022 were more on the upward side compared to October 2022. In the German starch market, the situation turned from oversupply to shortage within a very short time. As per trade sources, the demand from end-user pharmaceutical and food industries had started to increase due to the old stocks getting exhausted and due to clear weather; the moisture content in Corn Starch had also started to reach its optimum level. However, Corn Starch prices were traded at a fairly firm price throughout December as there was less supply to the markets due to a shortage of feedstock inventories. Thus, prices increased to USD 1150/MT in December from USD 1015/MT in October, a gain of 15.4% from the quarter's beginning.
For the Quarter Ending September 2022
North America
With prices assembled at USD 620/MT in July, the North American market for Corn Starch started the Q3 of 2022 on a declining note. However, these values continued to decrease until September and were settled at USD 585/MT. Due to lowered price of its primary feedstock- Corn amidst the abundance of Corn available in the country, the price of Corn Starch was falling in the domestic market. As a result, this quarter saw an effective decline in demand from the downstream food and pharmaceutical sector, and most traders maintained a solid wait-and-see attitude. Therefore, producers reduced their prices to some extent to ensure shipment, which led to a modest decrease in the price of Corn Starch overall and impacted FOB pricing.
Asia- Pacific
In the Asia Pacific, the Corn Starch market recorded a steep decline throughout the third quarter of 2022 due to the falling prices of feedstock Corn with the rising speculation of a global recession. Also, bearish demand from downstream pharmaceutical and food sectors with muted purchasing activities because of uncertainties in the supply further affected the price in the domestic market. Early production of feedstock corn in agricultural areas resulted in successive inventories entering the market, due to which the purchase price of Corn was somewhat cut, which further benefitted Corn Starch producers. Therefore, by the end of Q3, the FOB Shanghai price of Corn Starch settled at USD 465/MT with a quarterly decline of 9.1%.
Europe
During the third quarter of 2022, the prices of Corn Starch continued to follow a downward trend in European countries, with prices settling in Germany and Belgium at USD 990/MT and USD 874/MT by the end of September due to dull market sentiments. The main reason behind the decline was mainly backed by a constant drop in feedstock corn prices due to the surplus production of spring corn resulting in excessive market inventories. Manufacturers gradually reduced their factory prices to clear their stockpiles, which caused the corn starch market price to keep falling throughout the quarter. Also, the purchasing activities were not high due to relatively low demand from the downstream pharmaceuticals sector in domestic and other European countries.
North America
In the second quarter of 2022, the Corn Starch market witnessed an upsurge in the North American region. The prices of feedstock corn surged gradually, owning to the Russia-Ukraine war crisis and associated suspension at Ukraine ports, which further disrupted the global supply chain. Soaring fertilizer prices with maximum cost support consequently escalated the cost of the feedstock corn crop. Being the major exporter of Corn Starch and with increasing demand in Canada and Mexico, the Corn Starch market witnessed a supply-demand gap as demand outpaced the supply side. Towards the end of Q2 2022, the prices of Corn Starch were recorded to be on the higher side, with values assessed at USD 630/MT.
Asia- Pacific
The prices of Corn Starch showcased an overall rising movement across the Asia-Pacific region during Q2 2022 because of positive sentiments in the domestic market and a surge in imports to Indonesia and Malaysia. The positive support for the increase in corn starch prices was mainly due to the tight market supply and demand pattern, which makes companies more willing to stand up for expenses. Also, the costs of the raw material corn rose significantly, led by the Russia Ukraine war crisis. As the situation worsened, Ukraine halted its production units, creating pressure on the other Asian manufacturers to export corn with the surging demand in industries, which led to higher processing costs for Corn Starch enterprises. In China, the FOB Shanghai prices of Corn Starch showcased an increment of 10.3%, with values assembling at USD 510/MT by the end of this quarter, whereas the Ex-Ahmedabad prices of Corn Starch in India surged to INR 42340/MT.
Europe
In the second quarter of 2022, the prices of Corn Starch showcased fluctuations in the European region due to mixed market sentiments. The prices of Corn starch in Germany declined till May and regained their upward momentum in June. The primary factor behind an overall decrease of 6% till May was decreased demand from the downstream pharmaceutical and food industries amidst weak purchasing momentum and overflowing stocks. But with an immediate inclined of 6.8% in June, the FOB Hamburg prices of Corn Starch in Germany surged to USD 1020/MT. Even though the raw material corn prices fell due to excessive stock amidst low temperature and rains in June have increased the moisture level in crops. The enterprises of Corn Starch still faced high costs because freight rates have surged on the back of the high fuel cost leading to higher processing costs.
