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.
For the Quarter Ending March 2024
North America
At the conclusion of the quarter, the price of Corn Starch in the US stood at USD 610/MT FOB Los Angeles. Throughout this quarter, the pricing trend for Corn Starch in the US depicted a negative change of 0.53% on average per quarter.
The pricing landscape for Corn Starch in North America during Q1 2024 has been marked by fluctuations influenced by various factors. Particularly, the US market has witnessed substantial price variations, indicating heightened volatility. Several factors have contributed to these market price fluctuations. Firstly, there has been a decrease in prices compared to the same quarter of the previous year, signaling a downward market trajectory. Furthermore, the percentage change from the preceding quarter in 2024 illustrates a further decline, solidifying the negative pricing atmosphere. The overall price trend for Corn Starch in the North American region during Q1 2024 has been pessimistic, with prices on a downward trajectory.
This trend can be ascribed to factors such as weakened demand, abundant inventories, and fluctuations in raw material prices. The pricing environment has been characterized by instability, with prices fluctuating throughout the quarter. Notably, there has been a significant price variance between the first and second halves of the quarter, although specific figures were not provided.
Asia Pacific
Throughout Q1 2024, the pricing landscape for Corn starch in the APAC region witnessed significant fluctuations, largely influenced by several key factors. The quarter concluded with Corn starch FOB Shanghai in China priced at USD 460/MT, showcasing a 0.37% average quarterly increase.
This rise was primarily driven by heightened demand both domestically and internationally, prompting suppliers to adjust their pricing strategies to capitalize on this trend. The market experienced a notable and consistent upward price trajectory, supported by the depreciation of the Chinese currency against the USD. Buyers adopted a cautious approach, delaying orders, which momentarily stabilized the surge. However, initial order fulfillment led to tight stock levels, further fueling price hikes. Geopolitical tensions and trade disruptions added complexity, causing shipping delays and increased costs. By March, an oversupply emerged, prompting suppliers to decrease prices to clear excess inventory. This drop was also facilitated by freight charges normalizing after being inflated due to geopolitical issues, easing financial pressures.
However, towards the end of Q1, despite the price decrease, the market remained relatively unchanged as a surplus of Corn starch persisted, prompting suppliers to further lower prices to manage excess stock. To address this oversupply, discounts were offered to incentivize bulk purchases, aiming to boost demand and prepare for future restocking. The normalization of freight charges also played a role in the continued price decline, alleviating cost pressures and contributing to the overall decrease.
Europe
The pricing landscape of Corn Starch in the European market during the first quarter of 2024 has been shaped by multiple factors. By the close of the quarter, the latest price for Corn Starch CFR Antwerp in Belgium stood at USD 700/MT.
Several significant drivers have impacted the pricing dynamics of Corn Starch across Europe during Q1 2024. Overall, the market has witnessed a downward trend in prices, with Belgium experiencing the most significant fluctuations. This decline can primarily be attributed to subdued demand for Corn Starch, leading to an oversupply situation. The weakened demand stems from cautious consumer behavior and economic uncertainties, prompting restrained investment and purchasing habits. Moreover, reduced manufacturing activity in the region has further dampened the demand for Corn Starch.
The price drop has also been influenced by adjustments in procurement strategies adopted by downstream processing enterprises, capitalizing on the market's surplus of Corn and adapting their pricing tactics accordingly. Additionally, the strength of the US dollar against other global currencies has provided market participants with advantageous opportunities to procure and vend Corn Starch at reduced rates, thereby impacting pricing dynamics. In Belgium specifically, prices have consistently declined throughout the quarter due to a blend of factors including oversupply, subdued demand, and strategic maneuvers by market participants. The decrease in prices has also been affected by the reduction in the cost of raw materials, particularly Corn.
MEA
At the close of the quarter, Corn Starch prices in the UAE reached USD 450 per metric ton CFR Zayed, marking a quarterly uptick of 0.78%. The initial months of 2024 witnessed considerable volatility in Corn Starch pricing across the MEA region. Various factors influenced these fluctuations significantly. One prominent factor was the temporary suspension of mass production in exporting nations during the Lunar New Year and Spring Festival. This disruption in supply chains led to delayed order fulfillment and a subsequent surge in demand post-holiday, causing a mismatch between supply and demand and driving prices upwards. Moreover, the increased costs of raw material corn also contributed to the higher production costs of Corn Starch, further pushing prices upwards.
Among the MEA countries, the UAE experienced the most notable price fluctuations during this quarter. Corn Starch prices in the UAE saw a depreciation of 2.27% in January and a further decline of 7.32% in March compared to the previous month. Overall, the trend in the UAE market was negative, with prices consistently dropping throughout the quarter. This trend can be attributed to a combination of strong market sentiment, supply chain disruptions, and heightened demand.
Traditionally, the first quarter witnesses heightened demand for Corn Starch, especially preceding significant holidays like the Chinese New Year. However, the market dynamics in 2024 differed from expectations, leading to a downward trend in prices instead.
