Note: Price difference = Vietnamese cassava starch price (including tax) - Corn starch price (including tax)
This week, the average price (including tax) of Vietnamese cassava starch at Qingdao Port was 3284 yuan/ton, and the average price (including tax) of Shandong corn starch was 2740 yuan/ton. The average price difference between the two was 544 yuan/ton, narrowing by 27 yuan/ton compared to last week. The price difference between Thai cassava starch and corn starch was 881 yuan/ton. In the paper industry, the two are somewhat substitutable for starch raw materials. Due to the high price difference, the cost-effectiveness of cassava starch has decreased, and paper companies are gradually reducing the proportion of cassava starch in their raw materials, resulting in a significant decrease in demand for Thai cassava starch.
This week, domestic cassava starch spot prices remained stable with slight declines. Ports continued to receive shipments, with varying costs, and some traders actively sold off their stock. Vermicelli factories operated intermittently, focusing on reducing inventory and showing little interest in restocking. Compared to demand, supply in the distribution sector was sufficient this week, putting downward pressure on prices for some brands. As of December 31st, the mainstream transaction price of Thai corn starch in Qingdao was 3400-3700 yuan/ton, a decrease of 25 yuan/ton from the previous week, a drop of 0.70%. The mainstream transaction price of Vietnamese corn starch in Qingdao was 3100-3330 yuan/ton, a decrease of 25 yuan/ton from the previous week, a drop of 0.77%.
This week, the domestic corn starch spot market price maintained a generally weak trend. Prices in some high-end areas of North China followed the mainstream market decline, but the impact was limited. Overall market sentiment was weak, with a strong wait-and-see attitude. Downstream end-users and traders maintained only essential purchases. Due to the continued supply and demand pressure in the industry, downstream demand was insufficient, and market circulation mainly consisted of previous contract orders, with major companies experiencing limited new orders. Farmers in the Northeast corn-producing region remained reluctant to sell, and downstream processing companies purchased only as needed, with some companies raising purchase prices. Grain supply in North China remained relatively stable, and mainstream corn market prices remained stable. This week, the average spot price of corn starch in domestic producing areas was 2763.34 yuan/ton, a decrease of 6.94 yuan/ton compared to last week.
Source: Zhuo Chuang Information)