For the Quarter Ending March 2025
North America
In Q1 2025, U.S. corn starch prices experienced significant volatility, driven by a combination of supply constraints, demand fluctuations, and logistical challenges. In January, prices maintained an upward trend due to robust demand from sectors like pharmaceuticals and food processing, along with supply disruptions caused by rising freight costs and port congestion, particularly at the Port of Los Angeles. These logistical issues, along with inventory shortages, heightened price pressures.
February saw prices continue to rise as poor corn harvests in late 2024 and strong export demand, particularly from Asia and Latin America, further strained domestic supplies. This tight supply situation, compounded by severe congestion at key U.S. ports, led to extended delivery times and increased production costs. By March, however, prices began to decline.
Favorable manufacturing conditions, high domestic inventories, and less intense logistical disruptions allowed for price reductions. Additionally, a weakening U.S. dollar and cautious buying behavior, driven by concerns over rising tariffs, contributed to the downward trend. With global demand sluggish and export activity limited, producers lowered prices to manage excess stock and sustain customer interest. Overall, the first quarter of 2025 saw a shift from rising to falling prices, influenced by both domestic and international factors.]
Asia Pacific
In Q1 2025, the Indonesian Corn Starch market experienced a dynamic price trend, marked by both increases and declines driven by global supply and demand conditions. January saw a moderate price uptick, fueled by strong demand from the food and beverage and pharmaceutical sectors, coupled with rising export prices from major suppliers like China and the U.S. This tightening global supply, alongside higher freight costs, left Indonesian importers with limited bargaining power, pushing prices higher.
February continued this trend, as Indonesia faced rising global prices, logistical disruptions, and strong demand post-Lunar New Year. Competition for limited supplies from key producers like China intensified, further pushing prices up. However, by March, the market shifted as prices began to decline. High inventory levels, coupled with improved logistics and stable shipping conditions, alleviated some pressure.
Despite the ample supply, global demand remained weak, particularly in sectors like food, pharmaceuticals, and industry. The subdued demand, combined with efforts from producers to clear excess stock, led to price reductions. As the quarter closed, the market reflected a balance of cautious optimism with downward pressure on prices due to weak global consumption. Moving forward, the outlook for Q2 2025 will depend on global demand recovery and supply-side conditions.
Europe
The price trend for Corn starch in Germany during Q1 2025 exhibited significant volatility, driven by varying demand and supply dynamics. January saw a price decline of -3.61%, primarily due to logistical disruptions and weak global demand, despite steady supply levels. Although manufacturing activity increased, oversupply pressures dominated, preventing sharp price fluctuations.
Moving into February, prices surged due to heightened demand across Europe, limited raw material availability, and rising production costs, particularly in energy. However, logistical issues, including port delays at Hamburg, compounded supply constraints. Despite these, the demand from the food and beverage sector and the strategic purchasing by buyers contributed to the upward price movement.
In March, the market reversed course, with prices declining once again. The weakening global demand post-Lunar New Year, high domestic inventories, and stable logistics contributed to an oversupply situation, leading to price reductions. Exporters focused on clearing excess stock, which further pressured prices downward. Overall, Q1 2025 ended with a mixed trend, starting with a decline in January, peaking in February, and softening in March. With the balance between supply and demand uncertain, market participants will likely maintain cautious procurement strategies in the near term.
For the Quarter Ending December 2024
North America
The overall trend of the U.S. corn starch market in Q4 2024 has been a steady decline, primarily driven by oversupply and weak demand across major sectors. As the U.S. led global corn starch production and trade, manufacturers saw rising prices early in the quarter, bolstered by strong domestic demand, particularly from the food and beverage industries. Strategic inventory management and disrupted supply chains further supported the market’s resilience.
However, by November 2024, the market faced a sharp downturn due to aggressive destocking, competitive pricing, and weakened demand, especially in pharmaceuticals and food sectors. Despite some domestic demand stability, inventory surpluses and reduced consumption led to price reductions.
Export markets saw lower prices due to weak buyer interest and high port inventories. December saw further price declines, exacerbated by weak demand and an oversupply situation. Challenges in raw material pricing, employment issues, and logistical disruptions contributed to a soft outlook. The market’s primary driver became competitive pricing rather than increased demand. At the conclusion of the quarter, the price of Corn Starch FOB Los Angeles in US was recorded at USD 530/MT with an average quarterly decline of 0.92%, continuing the downward trajectory observed throughout this quarter.
Asia Pacific
The Corn Starch market in China witnessed a declining trend throughout Q4 2024, driven by a combination of supply pressures and geopolitical factors. In October, prices surged due to shipping disruptions, typhoons, and rising demand from the pharmaceutical sector, ahead of the post-holiday season.
However, in November, prices decreased due to supply chain adjustments and destocking activities before the holiday season, despite steady demand in both domestic and international markets. Lower corn prices, a result of favorable weather and higher harvest yields, contributed to lower production costs and a surplus in the market. International competition and the depreciated yuan further reduced prices.
This shift created a buyers’ market, especially with geopolitical concerns like the potential tariffs announced by President-elect Trump, triggering aggressive destocking and discounted pricing. The overall trend in Q4 2024 was a downward price trajectory, with market players adjusting to a more competitive and cautious environment, particularly in light of the oversupply and reduced demand from sectors like animal feed and ethanol.
Europe
The overall trend in Q4 2024 for the Corn Starch market in Germany and Europe was characterized by fluctuating prices, driven by supply constraints, demand patterns, and macroeconomic factors. Germany, a key producer, saw a consistent price increase due to limited supply, higher input costs, and varying buyer demand.
Exporters adjusted domestic prices in response to tight inventories, and increased import costs further stressed industries reliant on Corn Starch, like pharmaceuticals. However, in November and December, a shift occurred with a downward trend, triggered by waning demand, reduced production costs, and excess supply.
Economic challenges, including declining business activity in the eurozone and weaker demand from downstream industries, contributed to this bearish sentiment. By December, corn production in Europe increased, but this created oversupply concerns and downward price pressure. The weaker euro further exacerbated the trend, making European corn more attractive to international buyers, but insufficient demand from key sectors led to lower prices. The market is likely to remain subdued unless demand stabilizes. At the conclusion of the quarter, the price of Corn Starch FOB Hamburg was recorded at USD 670/MT with an average quarterly incline of 0.28%.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Corn Starch market faced a significant decline in prices, largely driven by a combination of oversupply and weak demand, both domestically and internationally. A substantial oversupply led to a situation where production outstripped the needs of downstream industries, creating an imbalance that manufacturers struggled to rectify. The weak demand was exacerbated by a reduction in consumption from neighboring regions, compounded by an overall subdued trading environment.
In the USA, where the most pronounced price shifts occurred, market sentiment remained predominantly negative. This was reflected in manufacturers' decisions to cut back on production levels, resulting in the first contraction of supplier lead times in three months. End-users adopted a more cautious purchasing strategy, focusing on immediate needs rather than proactive inventory restocking. This cautious approach dampened buying interest, reinforcing bearish sentiment within the market.
The quarter concluded with an overall price decrease of -8% from the previous quarter, followed by an additional decline of -3% in the second half. The final price at the quarter's end was USD 545/MT FOB Los Angeles, underscoring the sustained trend of decreasing prices.
Asia Pacific
In the third quarter of 2024, the Corn Starch market in the APAC region has experienced a notable decline in prices, driven by several interconnected factors. Global economic conditions, supply chain disruptions, and fluctuating demand across various sectors have significantly influenced market dynamics. China emerged as a key player, witnessing the most substantial price adjustments that reflect the overarching trends in the region.
Seasonal factors and market correlations further shaped the price fluctuations. When compared to the same quarter last year, prices exhibited a significant downturn, with a consistent 0% change from the previous quarter in 2024. The second half of the quarter saw prices drop sharply by 7% compared to the first half, indicating a heightened volatility in the market.
Despite some stability in certain segments, the overall pricing environment remains bearish, culminating in a quarter-ending price of USD 420/MT of Corn Starch FOB Shanghai in China. Additionally, disruptions in plant operations during this period exacerbated the situation, further influencing the supply side and contributing to the declining price trend. The overall outlook for the Corn Starch market remains cautious as these challenges persist.
Europe
Throughout the third quarter of 2024, the European region observed a significant decline in Corn Starch prices, particularly pronounced in Germany, which recorded the steepest drops. Several key factors contributed to this downward trend, primarily characterized by oversupply conditions that outpaced demand from downstream consumers. This oversupply was exacerbated by reduced production costs, which further fueled price declines.
High inventory levels led to cautious procurement behaviors among buyers, who opted for conservative purchasing strategies in light of ongoing global economic uncertainties. Germany, a leading player in the Corn Starch market, reflected these market dynamics, with prices plunging in response to the overall negative sentiment permeating the region. Notably, the correlation between price fluctuations in Germany and the broader European market emphasized a consistent trend of decreasing prices across the continent.
Seasonal variations and external disruptions, such as plant shutdowns, added complexity to the pricing environment; however, the overarching trend remained predominantly negative. When comparing the third quarter of 2024 to the same period in the previous year, prices exhibited a marked decline. At the conclusion of the quarter, the price of Corn Starch FOB Hamburg in Germany was recorded at USD 665/MT, continuing the downward trajectory observed throughout the year.
MEA
In Q3 2024, the Corn Starch market in the MEA region experienced a marked uptrend in prices, driven by a confluence of factors influencing market dynamics. The surge in prices can be attributed to supply chain disruptions, rising raw material costs, and an increase in global demand. Key production facilities faced plant shutdowns, which further constrained supply and intensified price pressures.
Additionally, escalating transportation expenses and fluctuations in currency values have compounded the cost challenges faced by industry participants. Among the countries in the region, the United Arab Emirates (UAE) exhibited the most pronounced price fluctuations. During the quarter, prices in the UAE rose by a notable 6% compared to the previous quarter, with a slight 1% difference observed between the first and second halves of the period. This trend reflects the overarching positive pricing environment sustained throughout Q3 2024.
By the end of the quarter, the price of Corn Starch in the UAE settled at USD 475 per metric ton (MT) on a cost and freight (CFR) basis to Zayed, underscoring the continuous upward trajectory in pricing trends across the region. In the UAE, the most significant price changes occurred. Prices for Corn Starch rose by an average of 0.77% for the quarter, driven by seasonal demand spikes and supply constraints. The ongoing recovery in the non-oil private sector and strong economic diversification efforts enhanced consumer and business confidence, supporting the upward price trend. By the end of the quarter, the price of Corn Starch reached USD 460/MT CFR Zayed, reflecting a buoyant market sentiment and solidifying the positive pricing environment throughout Q2 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Corn Starch market faced ongoing price declines due to several influential factors. The quarter was characterized by considerable supply-side disruptions and weak demand. A major factor was the surplus of corn from previous abundant harvests, creating excess stockpiles that pressured market prices downward. Eased geopolitical tensions also led to lower freight charges, reducing overall shipment costs. Additionally, significant plant shutdowns worsened the supply glut.
In the USA, where price adjustments were most pronounced, the Corn Starch market exhibited a persistent negative trend. This was due to a mismatch between high inventories and low purchasing activity. End-user sectors, burdened by inflationary pressures, showed reduced consumer confidence, further diminishing demand. Seasonal factors, including the spring planting season increasing raw material availability, also contributed to price declines. The observed trends indicated a strong correlation between falling raw material costs and decreasing Corn Starch prices.
Prices dropped by 1.6% during the quarter on an average quarterly basis, ending at USD 580/MT FOB Los Angeles. This decline reflects the challenging pricing environment for Corn Starch in the USA during Q2 2024, driven by oversupply, lower logistical costs, and weak demand.
Asia Pacific
In Q2 2024, the APAC region experienced notable fluctuations in the corn starch market. At the start of the quarter, prices dropped before gaining momentum and increasing. In April, the Chinese market saw a significant downturn in corn starch prices, primarily due to high inventory levels held by domestic suppliers. This surplus led to strategic price reductions aimed at clearing stock and making room for new inventory. Consistent domestic and international demand further reinforced this trend, as market players lowered prices to remain competitive. The appreciation of the US dollar also supported these price decreases.
The ongoing loose supply in the domestic corn market resulted in continued declines in raw material costs. Combined with weak downstream demand, this exerted downward pressure on corn starch prices. However, later in the quarter, prices began to rise due to increased production costs, robust demand, and significant supply chain disruptions. Factors such as rising energy costs, logistical challenges from geopolitical tensions, and droughts affecting critical routes like the Panama Canal exacerbated container shortages and inflated freight costs, driving up market prices.
China saw the most pronounced price changes, driven by the appreciation of the yuan, increased inquiries, and strategic destocking activities. Seasonal factors, such as rising temperatures, also contributed to decreased raw material corn prices, impacting overall production costs. By the end of Q2 2024, the price of corn starch in China was USD 445/MT FOB Shanghai, reflecting a stable yet cautiously optimistic market environment despite a significant 1.02% decline earlier in the quarter.
Europe
In Q2 2024, the European Corn Starch market experienced a significant price decline, driven by economic uncertainties, high inflation, and global supply chain disruptions. These factors resulted in excess inventories and weakened demand, leading to an oversupply situation that prompted suppliers to offer discounts. Additionally, reduced raw material costs and stabilized freight charges contributed to the overall price drop.
Germany, in particular, saw the most notable price adjustments. The market underwent a significant correction during this period, with Corn Starch prices trending downward. Destocking efforts and weaker-than-expected demand from the food and manufacturing sectors intensified the bearish outlook. Seasonal demand typically seen during this time was notably absent.
By the end of Q2 2024, Corn Starch prices in Germany had decreased by 5.23% on an average quarterly basis, closing at USD 680/MT FOB Hamburg. The market remained challenging, characterized by negative sentiment due to ongoing economic pressures and supply-demand imbalances. No major plant shutdowns were reported during this quarter.
MEA
In Q2 2024, the Corn Starch market in the MEA region experienced a notable increase in prices. The quarter began with a decline, but prices surged significantly from mid-Q2 onward. The UAE corn starch market, in particular, saw substantial price volatility during April and May 2024. Initially, prices rose in April due to complex factors affecting both exporting and importing regions. However, lower logistics costs and excess inventory clearance led to reduced prices despite steady but pessimistic domestic demand. The abundant supply of raw corn decreased domestic corn prices and raw material costs, putting additional pressure on corn starch prices. By May, various global and domestic factors contributed to a noticeable price decline. Lower production costs in exporting countries and high export prices led buyers to delay purchases, while companies liquidated inventories, creating a buyer-friendly market. Overall market sentiment in May remained weak, reflecting the complex interplay of these forces.
In the latter part of the quarter, critical factors drove the price increase. Global supply chain disruptions, including plant shutdowns in major exporting regions, tightened the market. Elevated production costs due to rising raw material prices and higher logistics expenses further exacerbated the situation. Anticipating further price hikes, buyers engaged in bulk procurement, resulting in a demand surge that outpaced supply.
In the UAE, the most significant price changes occurred. Prices for Corn Starch rose by an average of 0.77% for the quarter, driven by seasonal demand spikes and supply constraints. The ongoing recovery in the non-oil private sector and strong economic diversification efforts enhanced consumer and business confidence, supporting the upward price trend. By the end of the quarter, the price of Corn Starch reached USD 460/MT CFR Zayed, reflecting a buoyant market sentiment and solidifying the positive pricing environment throughout Q2 2024.
