For the Quarter Ending September 2023

North America

In September 2023, Potato Starch Prices gracefully decreased by 1.67%, exhibiting a contrast to July levels. The third quarter saw a decline in business activity in the United States, driven by weakened demand from both local and foreign markets. In August, inflation in the United States reached 3.7%, marking the first increase since June 2022. A sharp surge in energy costs at the end of the summer contributed to the rise in prices, intensifying the impact on consumer confidence. These inflationary pressures indicate a departure from the Federal Reserve's 2% target rate, prompting authorities to contemplate raising interest rates later in the year. In July, the Federal Reserve increased its key policy interest rate by 0.25%, the eleventh such increase in 17 months, aimed at addressing persistent inflation. Despite these efforts, inflation remained high in September, primarily due to surging gas and rental prices, placing an additional burden on households. New orders for the sixth consecutive month declined, albeit at a slower rate, leading to a decrease in Potato Starch prices.

Asia Pacific

Potato Starch prices in the Chinese market displayed a varied trajectory in the third quarter. July witnessed a price increase driven by rising demand from both domestic and international markets, coupled with a scarcity of supply. Although the manufacturing sector remained in recession in July, there was a slight improvement, indicating modest growth in industrial production efficiency amid increased market demand. The upward trend continued as enterprises raised selling prices in response to heightened demand. However, prices declined in August due to weakened end-user demand and ample market supplies. August also saw a fifth consecutive month of decreased manufacturing activity, with the service sector slowing down as consumers restrained their spending. Additionally, rising interest rates in key export nations contributed to a global decline in Potato Starch demand, exacerbating the negative trend. Prices rebounded in September due to a consistent increase in new orders, signaling a rise in demand for the manufacturing business.

Europe

Potato Starch prices in Germany followed a diverse trajectory during the third quarter. July witnessed a significant surge in prices due to heightened demand from end-consumers and reduced stock levels among market merchants and suppliers. Intense weather conditions, including heat waves and heavy rain, disrupted transportation networks, causing delays in meeting market demand and contributing to the rise in prices. Conversely, August saw a decline in Potato Starch prices due to abundant availability among market suppliers and a decrease in client demand. Market retailers and service providers reported lower new orders and consumption activities. Rising interest rates and inflation further eroded consumer confidence, leading to reduced domestic demand for Potato Starch. Nevertheless, prices rebounded in September, indicating a resurgence in consumer confidence in the German market. This reversal may be attributed to factors such as limited inventory, increasing energy prices, and growing end-user demand.