VIETNAM -MKT REPORT- CASSIA PRICE INCREASE STEADILY

 

 

 

Situation of cassia and aniseed have been very stressful, prices have increased daily, raw material is scarce.
After the Covid epidemic has been controlled, demand for aniseed and cassia increased sharply.
The strict control of cassia, aniseed material imported from China makes the goods more scarce.
China is actively buying aniseed flowers from Vietnam now.
Price of Cigarette Cassia – Split Cassia – Broken Cassia  increased sharply, price of aniseed increased even more strongly, even nearly doubling price at beginning of October.
Some warehouses regret that they did not buy material when price was low, when price has been up ad demand still tall, but they have no stock to sell.
It is forecasted that in coming time, when new crops have not yet entered (new crops of cassia and aniseed both start at March end and early April 2021), price of cassia and aniseed will continue to increase steadily. Only warehouses who gathered material at low prices can offer competitive prices. Some customers have a strategy of purchasing at a time of low price and accepting forward delivery, then this time they are winning big. 

VIETNAM SPICES MARKET UPDATE 17TH AUGUST 2020 – WEEK 34

 

PEPPER
Last week, the pepper market increased about 2% with demand from China and the Middle East. The USA still shows a relatively small demand and only accepts to buy long time shipment orders while almost Vietnam exporters hesitate or withdraw. The EU is on holiday so demand continues to be quiet. We hope the market will be better next time when some countries reopen again.  In addition, Russian have found vaccines/India and the USA are also testing many vaccines in the final stage. Hope everyone/all of the world will be healthy, starting a new business cycle soon.

Current weather in Vietnam; After fluctuating and flooding, the weather is currently well evaluated in key pepper areas such as Daknong & Daklak. Impacts of the 2021 pepper crop are likely to be low in these two key provinces. We will send more information after the survey next October.

 Indonesia; According to the information received, the heavy rain and flood took place on a large scale, so the crop heavily affected both black and white pepper. Currently Indonesian prices are at a very high level with a reference price of $ 2,550 – 2,650 LASTA and $ 4,150 for FAQ white pepper.

 Brazil; Currently, it still offers competitively, but mainly delivered in quarter 4/2020

 

CASSIA
Heavy rain and flooding happen in the largest cinnamon area in Vietnam. Therefore, the harvest for the 2020 crop is affected and the price of cinnamon is likely to remain stable as demand from EU/USA/India/Bangladesh still supports the market.

 

STAR ANISE
The amount of inventory is still tight. The price is expected to be stable or increase in the coming time.

 

 

 

CHECK OUR OFFERS AT https://offers-peppertrade.blogspot.com/

 

CASSIA PRICES EVOLUTION 2016-2020

CASSIA MKT UPDATE JUNE 20, 2020

20-Jun-20

The March cassia crop (the main crop) ended more than a month ago.
Due to Covid pandemic, transactions in March-April was bleak, but since May the orders have increased and factories have been active in collecting goods to perform the signed contracts.

Cassia is no longer in farmers now, local traders also sold nearly all their stock to factories.
Currently, the amount of cassia, especially cigarette cassia have started to be scarce, the price of split cassia, broken cassia have increased by USD 200-300/ton compared to the price of early June.

The prices of cigarette cassia in factories are very different.
Some factories offer a little higher than the price in early June, possibly because they have collected more goods. But there are factories offering cigarette cassia very high, more than USD 300-400/ton compared to the average price in early June.

The market of Vietnamese cigarette cassia during last 2 years is quite good, high demand due to Indonesia price which are much higher than Vietnamese prices, so buyers turn to Vietnam.

It is expected that in coming time, price of cassia will continue to be stressful, especially for cigarette cassia, when the demand in countries recover after the pandemic while inventories are not much, the new cassia crop (subsidiary crop) will be available in Nov-Dec.

As in 2017/18/19, the price of cigarette cassia usually increases sharply from July to year-end. 

CHECK OUR OFFERS AT https://offers-peppertrade.blogspot.com/
TODAY´S LAST
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