The Overall Margins of Corn Starch Processing Has Increased in August and the Operating Rate Began to Recover

(1) May Corn Starch Prices in the Production and Consumption Areas Averaged at RMB 2,880/MT, RMB 120/MT higher than Last Month
 
Along with the cost reduction of corn, starting from mid-August, the price of corn starch was falling from a high level in the North, Northeast, and Huanghuai regions. Nevertheless, the average monthly price of corn starch, which is 2880 yuan/ton in August, were still higher than last year with a 3.4% increase of 120 yuan/ton.
 
The quote from the Northeast was 2,765 RMB/ton on average, the quote from North China and the Yellow-Huaihe River Region was 2,830 RMB/ton, and the price in consuming regions was 2,920 RMB/ton on average, up 185 RMB/ton or 7.2%, up 140 RMB/ton or 5.2%, and up 80 RMB/ton or 2.8% from previous month.
(2) The Overall Margins of Corn Starch Processing were Higher than Last Month
Although the overall cost of corn was higher than last month, the price of corn starch even had a larger increase. In August, the processing margins of corn starch enterprises were higher than those of the previous month. The average monthly profit of corn starch processing was 158 yuan/ton, with a 179 yuan/ton increase on revenue over last month.
 
Additionally, the average processing benefit of corn starch processing enterprises in Jilin Province was 340 yuan/ton monthly, up 230 yuan/ton MoM; while margins of processing enterprises in Shandong Province in August was -30 yuan/ton, seeing an revenue increase of 120 yuan/ton from the previous month.