1. Market Review: Spot Prices Diverge, International Prices Rise
This week, domestic cassava starch spot prices showed divergent trends. As of March 19th, the mainstream transaction price for Thai cassava starch in Qingdao was 4000-4100 yuan/ton, a decrease of 50 yuan/ton from the previous week, a drop of 1.22%. The mainstream transaction price for Vietnamese cassava starch in Qingdao was 3700-3880 yuan/ton, a decrease of 25 yuan/ton from the previous week, a drop of 0.66%. International cassava starch prices rose this week. As of March 19th, the intended transaction price for Thai cassava starch was FOB 500-530 USD/ton, an increase of 5 USD/ton from the previous week, a rise of 0.98%. The mainstream intended transaction price for Vietnamese cassava starch was CFR 480-510 USD/ton, an increase of 12.50 USD/ton from the previous week, a rise of 2.59%.
2. Driving Factors: Slightly Increased Supply and Decreased Demand, Qingdao Port Spot Prices Decline Slightly
Domestic: This week, domestic cassava starch spot prices fluctuated. Prices at Qingdao Port declined slightly as goods arrived at the port and some traders increased their willingness to sell, leading to a slight increase in supply in the distribution chain. Downstream demand decreased compared to last week, and some brands adjusted their prices downwards. Prices at southern ports reacted later than in Qingdao, starting at the end of the week's price increase phase and stabilizing mid-week. Rising import costs provided support for spot prices, but decreased acceptance by end-user factories suppressed price increases.
International: This week, international cassava starch prices rose, primarily driven by reduced supply and rising costs. From a supply perspective, reduced cassava production in Southeast Asia makes it difficult to guarantee raw material supply for cassava starch production. Factories are mostly operating intermittently, limiting new cassava starch production. From a cost perspective, raw material cassava prices continue to rise, and geopolitical factors have limited shipping capacity in Southeast Asia, leading to increased land and sea freight costs.
3. Market Outlook: Supply Exceeds Demand in Distribution, Spot Prices May Decline Slightly Next Week
The spot price of cassava starch is expected to decline next week. With ports receiving shipments next week and previous orders at costs lower than market prices, some traders are actively selling, increasing supply in the distribution chain. Downstream demand is weakening, leading to an oversupply and a potential price correction. However, persistently high international prices may provide support for the bottom of the spot price, limiting the potential for further price drops. The spot price at Qingdao Port is expected to be between 3650-4100 yuan/ton next week, with an average weekly decrease of 25 yuan/ton.
Source: Zhuo Chuang Information)