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Asia Bio-Chem Group Corporation ABCXF



GREY:ABCXF - Post by User

Post by thediggeron Apr 28, 2015 8:05am
152 Views
Post# 23670691

Chinese Corn Starch Producers slowly re-open their plants

Chinese Corn Starch Producers slowly re-open their plantsHere is a part of an article that should interest you. Chang-Tu and Daqing plants must also be about to re-open. Just ask the company (Mr Wilson) if you want this to be confirm. I am about to do so...

https://eshare.cnchemicals.com/publishing/home/2015/03/26/1930/corn-and-starch-prices-in-china-set-to-rise-in-spring.html

"This year, corn starch companies in general have re-started production later than usual after the Spring Festival holidays, which has created a shortage of corn starch in the market.

Moreover, most corn starch producers currently have low stock levels as they are short of capital. Many companies have made losses over the last three years due to the chronic overcapacity in the industry.

As a result, corn starch prices have been rising steadily since the start of 2015, and are now at 471USD/t, an increase of 2USD/t on prices in January.

Prices have not risen further because, up to now, demand from downstream industries such as starch sugar, papermaking, food and fermentation has been weak. Many companies in these industries have also not yet re-started production, and the ones that have are mainly still consuming their previous stocks.

Corn starch producers are now gradually resuming production, and operating rates in the industry increased to over 50% in March from just 45% in February. However, several companies have still not re-started production because they are overhauling their production facilities.

As these companies begin operating once more, corn starch supplies should improve, though demand is also likely to rise."

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