For the Quarter Ending March 2025
North America
In Q1 2025, Potato Starch prices in the USA saw notable increases, driven by a combination of trade policies, stockpiling, and rising operational costs. In January, a surge in demand occurred as U.S. importers rushed to stock up ahead of a 10% tariff on Chinese goods, set to take effect in February. This was compounded by the Chinese Lunar New Year, which further strained supply chains. Additionally, rising energy costs contributed significantly to the upward price trajectory.
February continued this trend with an increase in prices due to the implementation of tariffs, which added costs to imported goods, including Potato Starch. Buyers also anticipated a potential 25% tariff on pharmaceutical ingredients, prompting further stockpiling. By March, the pace of price increases slowed to just 0.41%, driven by weakening demand, high inventory levels, and geopolitical uncertainty. The U.S. dollar’s depreciation and concerns over potential European tariffs added to market caution.
Although logistical bottlenecks eased slightly, the market remained cautious as global economic and trade policy concerns influenced buying behavior.
Asia Pacific
In Q1 2025, the Indonesian market for potato starch experienced a consistent upward trend. The prices of potato starch surged in January, supported by favorable market conditions such as strong demand from downstream industries like food processing, textiles, and paper manufacturing. A decline in inflation rates and the Indonesian central bank's decision to cut policy rates further fueled consumer confidence and purchasing power. This led market participants to adjust prices upward in response to increased demand. In February, supply chain disruptions and rising import costs played a significant role in pushing prices higher. Delays at key European ports, coupled with labor disputes and increased yard utilization, created logistical bottlenecks, affecting shipments to Indonesia. Additionally, the depreciation of the rupiah against the U.S. dollar contributed to increased import costs. By March, the upward price trend continued, driven by sustained demand across various sectors. Overall, Q1 saw steady price increases for potato starch in Indonesia, reflecting a combination of favorable demand dynamics and supply-side challenges.
Europe
In Q1 2025, the Netherlands experienced a steady increase in Potato Starch prices, driven by a combination of demand and supply-side factors. January saw a significant rise, fueled by improved business confidence and stronger demand from industries such as food processing, pharmaceuticals, and paper production. Positive economic sentiment, coupled with rising inflation and energy costs, pushed up production expenses, which were passed on to consumers. February continued the upward trend due to supply constraints. Harsh winter conditions disrupted logistics and processing, reducing starch output and export availability. Additionally, higher energy prices and labor shortages led to increased manufacturing costs, further raising prices. Stable demand from key sectors such as food, paper, and textiles helped support the market. The anticipation of potential U.S. tariffs also prompted larger orders from U.S. buyers, tightening supply and adding to price pressure. By March, consistent demand maintained high prices. Overall, Q1 2025 was marked by rising Potato Starch prices driven by strong demand, limited supply, and higher production costs.
For the Quarter Ending December 2024
North America
Potato starch prices in the U.S. market during Q4 2024 displayed significant fluctuations due to a mix of demand-supply dynamics, macroeconomic factors, and geopolitical developments. October saw a sharp price increase, fueled by heightened consumer demand following Federal Reserve rate cuts, ongoing port congestion from labor strikes, and preemptive inventory buildups ahead of the Christmas period. These disruptions, coupled with rerouted shipments amid tariff concerns under the incoming administration, intensified supply chain stress and drove up competition among buyers.
However, prices declined in November as demand softened, driven by inflationary pressures and high interest rates, while the U.S. dollar's strength made imports cheaper. The resolution of logistical bottlenecks, combined with healthy inventories, allowed for competitive pricing, further easing costs.
By December, prices fell further due to reduced consumer confidence, seasonal demand declines, and abundant stock levels maintained in anticipation of January’s potential strike and the Lunar New Year. The uncertainty around proposed tariffs also curbed purchasing activity, encouraging a cautious market stance. Overall, Q4 was marked by initial upward pressure on prices in October, followed by a gradual decline in November and December as market conditions stabilized.
Asia Pacific
In Q4 2024, Potato Starch prices in China exhibited a steady downward trajectory, influenced by a mix of domestic oversupply, weak demand, and global economic conditions. In October, subdued consumer demand within China, paired with an oversupplied market, intensified competition among suppliers, driving prices lower. Geopolitical uncertainties, particularly concerns surrounding the U.S. elections, further weakened export demand, particularly from key international markets. By November, the downward trend persisted as high distributor inventories and cautious market sentiment continued to suppress prices. Weak demand from international markets, including the U.S. and Europe, was exacerbated by fears of potential tariffs and slowing global trade. Additionally, declining crude oil prices reduced operational costs, enabling manufacturers to lower their selling prices without significantly impacting margins. In December, the price decline remained consistent. Domestic consumption was sluggish, and international orders from major buyers diminished, leaving suppliers with excess inventories. To mitigate storage costs and avoid stockpile issues before the Chinese Lunar New Year, suppliers offered further price reductions. Overall, Q4 2024 reflected a combination of oversupply, lackluster demand both domestically and abroad, and economic pressures, resulting in a continuous decrease in Potato Starch prices in China.
Europe
In Q4 2024, the Potato Starch market in Germany exhibited mixed trends influenced by varying economic and market dynamics. Prices saw a slight increase in October due to improved business morale, bolstered by the European Central Bank’s rate cut to 3.25%, which stimulated consumer confidence and spending. Pre-Christmas inventory buildup, coupled with logistical disruptions like longer transit times and port congestion in Hamburg, further fueled the price uptick. However, November marked a turning point with a slight decline in prices, driven by subdued demand from food, beverage, and pharmaceutical sectors. Weak retail performance and a 1.9% drop in energy prices eased inflationary pressures, reducing operational costs and enabling competitive pricing. The downward trend continued in December as reduced purchasing activity and buyer caution, fueled by inflation concerns and economic instability, dampened demand. Sufficient inventories and harsh winter weather, which disrupted logistics and slowed consumer spending, further pressured prices downward. Overall, Q4 reflected a dynamic interplay of economic recovery efforts, seasonal adjustments, and supply chain constraints shaping the Potato Starch market in Germany.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Potato Starch market experienced a notable increase in prices, driven by a confluence of factors. Heightened consumer confidence and improved economic perceptions bolstered demand, while looming threats of port strikes and supply chain disruptions led to proactive inventory-building among importers.
The anticipation of a busy Christmas period and early demand exacerbated supply pressures, further pushing prices upward. The Logistics Manager’s Index reflected a moderate expansion in the logistics sector, with inventory levels rebounding after a period of contraction. The supply of Potato Starch faced challenges from disruptions like port congestion and delays, impacting the timely delivery of goods. Demand remained moderate, supported by positive market sentiments and strategic restocking efforts by retailers.
In the USA, the market saw the most significant price changes, with a 2% increase from the previous quarter. The quarter-ending price settled at USD 1160/MT of Potato Starch CFR New York, marking a consistent upward trend in pricing. Plant shutdowns were not reported during the quarter.
APAC
In Q3 2024, the APAC region witnessed a notable surge in Potato Starch prices, driven by a confluence of factors. Strong global demand, particularly from key markets in Asia, Europe, and North America, propelled prices upward. This heightened demand was fueled by proactive inventory management by businesses preparing for the upcoming peak season, leading to supply chain disruptions and extended lead times. Moreover, rising input costs, including raw materials and labor expenses, added pressure on manufacturers to adjust pricing strategies, resulting in elevated market prices. China, experiencing the most significant price changes, saw a bullish market sentiment throughout the quarter. The correlation between price increases and heightened demand emphasized a positive pricing environment. Despite disruptions and plant shutdowns [mentioned], the quarter recorded a substantial 2% increase from the previous quarter. The comparison between the first and second half of the quarter showed a 1% price uptick, culminating in the quarter-ending price of USD 1210/MT of Potato Starch FOB Tianjin in China.
Europe
In Quarter 3 of 2024, the Potato Starch market in Europe experienced an upward trend in prices, driven by a combination of factors. Strong demand from end-users including food industries, coupled with disruptions in global maritime traffic, significantly impacted market dynamics. The ongoing conflict in the Red Sea led to congestion and equipment shortages at export hubs, resulting in delays and increased shipping costs. These challenges influenced pricing strategies, with producers raising prices to maintain profit margins. The improved economic outlook in the region boosted consumer sentiment, further fueling demand for Potato Starch. In the Netherlands, the market saw the most significant price changes, reflecting overall trends in Europe. The quarter recorded a 5% increase from the previous quarter and a 2% price difference between the first and second half. Despite disruptions and port bottlenecks, the quarter-ending price for Potato Starch FOB Rotterdam in the Netherlands was USD 1120/MT, highlighting a positive pricing environment characterized by rising prices and robust demand.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American region has experienced a pronounced upward trend in Potato starch pricing, driven by a confluence of market dynamics that collectively exerted significant pressure on supply and demand. The quarter was marked by an unexpected surge in consumer confidence, which spurred increased consumer spending across various sectors. Additionally, the early onset of the peak season further fueled demand, catching suppliers off guard and leading to widespread shortages. Compounding the supply constraints were logistical disruptions in the Red Sea region, which necessitated longer shipping voyages and elevated fuel costs, further driving up prices. The market also faced operational bottlenecks that exacerbated the supply-demand imbalance, leading to notable price escalations.
Focusing on the USA, which witnessed the most substantial price changes, the overall trend has been decisively bullish. The combination of heightened consumer optimism and strategic stockpiling by companies in anticipation of prolonged lead times contributed to sustained high demand. Seasonality played a crucial role, with the peak season's early onset amplifying demand pressures. The price correlation observed between the first and second halves of the quarter demonstrated a consistent upward trajectory, reflecting a 2% increase. This trend indicates a stable yet increasing pricing environment.
Comparing Q2 2024 to the previous quarter, Potato starch prices have rebounded positively by 3%, following a prior decline. The absence of any reported plant shutdowns or major operational disruptions in the USA further underscored the resilience of the supply chain despite the logistical challenges. Concluding the quarter, the price of Potato starch settled at USD 1135/MT CFR New York, underscoring a positive pricing sentiment throughout Q2 2024. The overall environment reflects a robust and bullish market, with prices steadily climbing in response to sustained demand and constrained supply.
APAC
In Q2 2024, Potato Starch prices in the APAC region experienced an upward trend, driven by several pivotal factors. The quarter witnessed significant supply constraints, exacerbated by logistic bottlenecks and ongoing geopolitical tensions in regions like the Red Sea. Disruptions in the supply chain were further intensified by adverse weather conditions, impacting the availability of raw materials necessary for Potato Starch production. Concurrently, an increase in demand from both domestic and international markets placed additional pressure on the limited supply. This demand surge was partly fueled by heightened consumption within key industries such as food and pharmaceuticals, which saw a robust recovery post-pandemic. Additionally, favorable economic indicators and improved business sentiments across the region bolstered market confidence, leading to anticipatory purchasing and stockpiling by market participants.Focusing on South Korea, which experienced the most pronounced price changes, the overall trend reflected a consistent increase in Potato Starch prices. Seasonality played a crucial role, with the latter half of the quarter witnessing a more significant uptick compared to the first half, noted at 3%. This period also saw a correlation between rising input costs and the tightening of supply chains, which together propelled prices upwards. Compared to the previous quarter in 2024, which recorded a -2% change, the current quarter's pricing environment has been positively buoyant, culminating in a quarter-ending price of USD 1110/MT CFR Gwangyang. The combined effects of heightened demand, supply disruptions, and optimistic economic sentiment have thus contributed to a prevailing positive pricing environment for Potato Starch in South Korea.
Europe
During the second quarter of 2024, the Potato Starch market in Europe experienced a consistent upward trajectory in pricing, predominantly due to several influential factors. This period was marked by a notable increase in industrial sector sentiment and consumer confidence, driving higher demand for Potato Starch. The Eurozone economy showed significant acceleration, with increased business activity and a surge in new orders, particularly in the mid-second quarter. Additionally, adverse logistical circumstances, including disruptions in the Red Sea and logistical bottlenecks within Europe, contributed to elevated transportation costs and delayed shipments, further inflating prices. Suppliers adjusted their pricing strategies in response to these market dynamics, quoting higher prices domestically and internationally. Moreover, there were no reported plant shutdowns, ensuring a stable supply chain despite the logistical challenges. Focusing on Germany, the market witnessed the most pronounced price changes. The German economy, recovering robustly, saw heightened consumer spending and an increase in industrial orders, propelling the demand for Potato Starch. Seasonally, the second quarter typically sees an uptick in demand due to increasing production activities, correlating with the observed price rise. Compared to the previous quarter, which recorded a -1% decline, the second quarter reflected a 2% increase in prices between its first and second halves, indicating a strong recovery and positive market sentiment. This upward trend culminated in the latest quarter-ending price of USD 1045/MT of Potato Starch FOB Hamburg, underscoring the consistent positive pricing environment in Germany and the broader European region throughout this quarter.
