The prices of Potato Starch saw a significant rise in the western market in October, continuing the upward trend from the previous months. This increase can be attributed to growing demand of Potato Starch from key sectors, particularly Food & Beverage and Pharmaceuticals, coupled with constrained supply. As prices surged, market players concentrated on replenishing their stock, which helped sustain a positive market outlook.

Despite a sluggish recovery in the latter half of 2024, the European economy is showing signs of moderate improvement, with consumption growth and investment recovery expected to drive future momentum. Firstly, the unexpected improvement in business morale, spurred by optimism about economic recovery, has boosted overall consumer confidence. This increase in confidence was further supported by the European Central Bank's decision to reduce its key interest rate to 3.25%, marking the third cut of the year. This policy change has encouraged more spending and investment, which benefits industries, including those reliant on Potato Starch.

At the same time, suppliers are working to ensure sufficient inventory of Potato Starch in the market as trade activity is expected to slow down during the Christmas period. This preemptive action, combined with the ongoing strain on supply chains, has added pressure on the market. Longer transit times around the Cape of Good Hope, along with continued congestion at Hamburg's ports, are causing delays in shipments, making it harder for suppliers to meet demand. These factors collectively contribute to the upward pressure on Potato Starch prices in Germany, as the industry prepares for slower logistical operations and potential shortages during the holiday season.

In the United States, the escalation of Potato Starch prices can be largely attributed to severe supply chain disruptions caused by ongoing port congestion and labor strikes at East and Gulf Coast ports, which began on October 1. These logistical challenges have delayed the distribution of products, including Potato Starch, exacerbating an already tight supply-demand balance. The restricted availability has intensified competition among buyers, driving up prices as they scramble to secure shipments amidst prolonged delivery timelines. Furthermore, the looming uncertainty over potential tariff increases under President-elect Donald Trump has prompted retailers to expedite shipments and reroute cargo to West Coast ports, adding to the strain on supply chains and fueling the upward momentum in Potato Starch prices.

According to ChemAnalyst, Potato Starch prices are anticipated to remain elevated in the coming months due to continued strong demand from end-users. The approaching holiday season, marked by Thanksgiving and Christmas, is projected to amplify this trend, as these festivities traditionally boost the consumption of processed and specialty food products. This seasonal surge in demand is likely to strain the already limited supply of Potato Starch, intensifying the upward pressure on prices.