China: Potato Starch Stocks Rise 52.56% Year on Year as New-Season Production Starts
Key takeaways
- 514,000 t of potato starch was in stock in China on 14 Sept
- 52.56% more starch stocks than at the same time last year
- 5,381.64 yuan/t average grade-one starch price, down 4.59%
- 380 yuan/t paid for starch potatoes after a rise to 450
Why it matters
- For farmers
- If you grow for starch, check contract prices against the 380 yuan/t spot level before delivering, and avoid unplanned sales on a falling market.
- For processors
- Plan output against stocks of about 514,000 t; lock in raw material volume rather than chase price, and watch Gansu and Ningxia start dates.
- For traders
- Expect buyers to negotiate hard while starch stocks stay 52.56% above last year; keep offers flexible after mid-September.
60-second summary
China enters the new potato starch campaign with far more product in warehouses than a year ago, and prices are under pressure. A market report dated 16 September puts national stocks at roughly 514,000 tonnes on 14 September, which is 52.56 percent above last year, with the northwest holding about 301,000 tonnes and the north about 188,000 tonnes. Grade-one starch averaged 5,381.64 yuan per tonne, down 1.16 percent from late August and 4.59 percent from a year earlier. Early in the campaign some factories paid up to 430 to 450 yuan per tonne for starch potatoes, hoping to lift starch prices, but the purchase price soon fell to 380 yuan. For growers who deliver to starch plants, this means weaker spot prices, so contract terms matter more than usual. For factories, large stocks and cheaper raw material point to thin margins. Gansu and Ningxia plants had not yet started, so the full picture will only emerge later. All figures come from a single market report and are not official data.
Potato starch stocks in China are much higher than a year ago. National inventories stood at about 514,000 tonnes on 14 September, according to a market report published by Hexun on 16 September.
That volume was 1.53% lower than a month earlier. However, it was 52.56% higher than at the same time last year.
North China held about 188,000 tonnes of the total. Northwest China held about 301,000 tonnes.
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Prices drift lower
The average market price for grade-one potato starch was 5,381.64 yuan per tonne on 14 September. It was 1.16% below the level at the end of August. It was also 4.59% below the price a year earlier.
New-season processing has started at different speeds across the country. Factories in Hebei and Inner Mongolia have entered their peak season. Autumn production has started in Shaanxi. Plants in Gansu and Ningxia had not yet started, according to the report.
Raw material costs rose, then fell
At the start of the campaign, some starch makers raised the price they paid for starch potatoes. The benchmark grade moved from 400 yuan per tonne to 430–450 yuan per tonne. The aim was to use higher costs to push starch prices up.
The move did not last. The purchase price later fell back to 380 yuan per tonne, the report said. With costs lower and supply larger than demand, the report expects starch prices may keep falling after mid-September.
The report describes the market as one where oversupply is hard to reverse. New-season starch is priced on its production cost, so cheaper raw potatoes feed directly into lower starch offers.
Why it matters
China is a major producer of potato starch, and the northern campaign sets the tone for the whole season. High carry-over stocks and falling raw material prices put pressure on both factory margins and the incomes of farmers who grow potatoes for starch. Growers on contract are better protected than those selling on the open market. Buyers of starch in food and industry may find more room to negotiate in the coming weeks. The figures come from one market report, so they should be read as an indication rather than an official statistic.
Photo: Potato starch (illustrative). Onlymyself65536 / Wikimedia Commons, CC BY-SA 3.0
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What next
The report expects starch prices may keep falling after mid-September. Plants in Gansu and Ningxia had not started processing, so their start will add new supply.
Sources
- Hexun via Sohu (Chinese) — https://www.sohu.com/a/1076911435_639898
- ОДИН ИСТОЧНИК
Linked in this material
- Country
- China
- Technologies
- potato starch processing
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