Potato starch prices are likely to rise globally in June, continuing the upward trend observed in the previous month, according to a report by ChemAnalyst. This increase is driven by several factors, including growing potato starch demand from downstream industries, higher feedstock prices, and supply chain disruptions.
As buyers anticipate even greater demand later in the year, they could boost their purchases in June, further straining available supplies and driving up potato starch prices.
As the potato harvest takes place from May to June, buyers are expected to rush to replenish their inventories with fresh stock, leading to increased market demand and a rise in potato prices. Since potato starch is derived from raw potatoes, this will elevate overall production costs, consequently driving up prices.
Recent data indicates that manufacturing activity in China experienced a sharper slowdown than expected in May, reaching its lowest level in three months.
Conversely, the eurozone saw a boost in economic activity in May, characterized by significant increases in business operations and new orders, particularly in the second quarter. This economic upswing has heightened demand for potato starch among end-users, which could consequently drive prices upward.
Starting in June, shipping expenses to Europe and the United States are poised to climb due to surcharges imposed by shipping firms to offset the heightened costs of rerouting vessels around the Cape of Good Hope.
Additionally, the peak shipping season in 2024 is starting earlier than usual due to several factors.
According to analysis by ChemAnalyst, the prices of Potato Starch are expected to keep rising due to sustained demand from the food and beverage and pharmaceutical sectors.
Source: ChemAnalyst. Full report here
Image: Credit Antara Verma from Pixabay
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