Pepper market on July 15, 2024

 

Pepper market on July 15, 2024: Pepper price stands at 150,000-151,000 VND/kg

Posted onJuly 15, 2024by VPA

15
Jul

Pepper price today July 15 is in the range of 150,000 - 151,000 VND/kg. Last week, the rapid increase in domestic coffee has absorbed all the capital from pepper. Currently, goods are coming to the market in small drops. There are no businesses buying thousands of tons of pepper right now, making demand in the market "fragile".

Pepper prices at the beginning of this morning remained stable compared to the same time yesterday. Summary: Last week, pepper prices decreased slightly in Dak Lak, increased in Ba Ria - Vung Tau, while remaining unchanged in the remaining localities.

Last week, the rapid increase in domestic coffee has absorbed all the capital from pepper. Currently, goods are coming to the market "in a trickle". There are no businesses buying thousands of tons of pepper right now, making demand in the market "fragile".

In addition to supply and demand issues, shipping congestion continues to affect exports in general and pepper in particular.

Container ship rates have skyrocketed due to delays and rerouting. According to statistics from the Financial Times, freight rates have increased fivefold in the past year and it is only a matter of time before consumers have to bear some of the increased costs.

Container port congestion in Singapore, one of Asia's largest ports, is spreading to Malaysia. Singapore's container port is currently the world's largest container transshipment hub, connecting more than 600 ports from 123 countries and with an annual capacity of about 50 million TEUs. Analysts expect congestion at shipping terminals could last until August.

Increased freight prices are embedded in the cost of goods, this is also a factor pushing pepper prices to continue to increase in the coming time. However, reporting on industrial and commercial production for the first 6 months of 2024, the Ministry of Industry and Trade stated that, according to the cycle, demand for goods will increase in both the domestic and world markets at the end of the year.

Vietnam is benefiting from a wave of orders shifting from the US and has many advantages in boosting exports to China. Pepper is also one of the export products affected as above. This year's export turnover of billions of dollars is wide open to completion with the current high pepper export price.

According to the Vietnam Pepper and Spice Association, the average export price of black pepper in 6 months reached 4,365 USD/ton, white pepper reached 5,983 USD/ton, an increase of 922 USD for black pepper and 1,028 USD for pepper, respectively. white compared to the same period in the first 6 months of 2023.

Commenting on the market this week, experts say that there has not been a driving force to push prices up. However, domestic pepper prices have formed a new price range and are difficult to reduce further. Pepper prices fluctuate around 150,000 VND/kg. If this week's coffee adjusts down after the past 2 hot weeks, capital flows will flow back to pepper, expected to bring the price to 155,000 VND/kg.