Vietnam Pepper market update April 3rd 2023 – Week 13 - Prices

We would like to send you a quick highlight spices market update 3rd April 2023 – Week 13.

Last week, the pepper market was quite stable and the trading volume on the market was not much. Now that the crop has been harvested, farmers/dealers continue to stock up and do not offer to sell when the pepper price is adjusted down. 

Importers have increased their purchases with faraway orders in the third and fourth quarters of 2023 but manufacturers and exporters are very cautious and offer little to sell long-distance orders as many experts forecast an upward trend in next time. 

According to preliminary statistics, Vietnam's pepper exports in March are forecast to reach over 36,000 tons In which China imported  over 14,000  tons 

This  broughtn Vietnam's total pepper export volume in 3 months to over 76,000 tons, up 40% compared to the first 3 months of 2022 (54,615 tons) and increased 23% compared to the first 3 months of 2021 (61,584 tons)

 According to the update from the International Pepper Association (IPC) on March 30 (local time), the world pepper price compared to March 29 is as follows:

INDIA

The price of pepper is almost unchanged

INDONESIA

Lampung black pepper (Indonesia): at 3,643 US/ton, up 0.22%.

Muntok white pepper: at $6,141/ton, up 0.21%.

BRAZIL

Pepper prices increased slightly due to strong demand from different markets. The Brazilian real currency is getting stronger against US which makes pepper more expensive when converted to US

MALAYSIA

Kuching black pepper (Malaysia) ASTA: at $4,900/ton, unchanged 

Malaysian white pepper ASTA: at $7,300/ton, unchanged

PEPPER PRICE INDICATION FOB HCMC 

REGULAR PEPPER

PINHEAD 1.5MM • 2MM CLEANED $1. 227

PINHEAD 2MM - 2.5MM CLEANED $1.446

PINHEAD SUPERIOR QUALITY $1.666

VBP 550 G/L FAQ $3.246

VBP 500 G/L Double Spiral Cleaned $3.319

VBP 550 Gil Double Spiral Cleaned $3.378

VBP 570 G/L Double ASTA $3.438

VBP 5MM Jumbo Size $3.540

White PEPPER 630 G/L DW $4.874

White PEPPER 630 G/LASTA $4.918

STEAM STERILIZED PINHEAD PEPPER

Steam Sterilized Pinhead < 1MM $1.453

Steam Sterilized Pinhead Super Quality $2.116

STEAM STERILIZED LIGHT BERRIES PEPPER

Steam Sterilized Black Pepper 250 G/L $3.218

Steam Sterilized Black Pepper 300 G/L $3.265

Steam Sterilized Black Pepper 350 G/L $3.312

STEAM STERILIZED PEPPER - EU COMPLIANCE

Steam Sterilized Pepper 500G/L $3.715

Steam Sterilized Pepper 550G/L $3.835

Steam Sterilized Pepper 570G/L $3.895

Steam Sterilized Pepper SMM $3.972

 Steam Sterilized White Pepper 630G/L $5.459

Vietnam Pepper market update 27th March 2023 – Week 12 and Prices

 We would like to send you a quick highlight spices market update 27th March 2023 – Week 12.

Last week, pepper price decreased slightly by 0.8% when demand was quite slow from different markets such as China / EU / USA / AFRICA…

The market last week pepper prices were less volatile when demand was quiet in the largest market, China.

Other markets such as the US / EU / ASIA ... have been interested in more orders for delivery in full year shipment 2023 than before. However, export manufacturers in Vietnam are very cautious and almost only offer spot orders.

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 Indication price PEPPER,  based on NET FOB HCM as follows

PINHEAD < 1MM SUPER CLEANED $1.146

PINHEAD 1.5MM - 2MM CLEANED $1.446 

PINHEAD 2MM - 2.5MM CLEANED $1.754 

PINHEAD SUPERIOR QUALITY $2.106 

BPEPPER 500 G/L FAQ $3.039

BPEPPER 550 G/L FAQ $3.246 

BPEPPER 500 G/L Double Spiral Cleaned $3.319 

BPEPPER 550 G/L Double Spiral Cleaned $3.378 

BPEPPER 570 G/L Double ASTA $3.438 

BPEPPER 5MM Jumbo Size $3.540 

White PEPPER 630 G/L DW $4.918 

White PEPPER 630 G/LASTA $4.962 

Pepper price in 2023 - UP or DOWN ?

The question of the moment is the Price
All the people involved in spice trading  or even need to know what is this year trend for Pepper.
We just got a report from one of biggest world spice trade players whose point of view may bring some answers.

Market will remain at pricing level for raw material between 62,000-67,000 VND/kg from Q1-Q2 and will slowly move upward into 75,000-80,000 VND/kg by Q3-Q4.

We suspect prices we are seeing this year will be the lowest. Next four (4) years cycle might lean into an upward trend from the current levels.

Pepper price hit a 10% increase in pricing since the beginning of this year. 
Lowest level was seen at 59,000 VND during January month and had crossed over the highs of 69-70,000 VND marked during February month.

Overall, we see indications suggesting bulls having a strong advantage over bears

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The Bearish Indicators

• Higher interest rates means higher storage cost which tampers buying power.

• Brazil crop news will probably be a decisive moment. If crop is big, it will supply Vietnam and rest of the world.

• Economic situation worldwide is not satisfactory which may reduce imports.

• Various countries encountering devaluation of their currencies and shortage of dollars causing a eduction in imports. 

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The Bullish Indicators

• Vietnam had already finished harvesting 80% of its yield and still no hint of selling pressure from farmers’ side.

• The new crop arrival in the warehouses were very limited during the peak arrival season.

• Chinese is actively buying and will remain active until June 2023.

• The first two (2) months of the year, Vietnam have already exported about 42,000 tons. March export is expected to reach about 30,000 tons. By first half of 2023, big volume will be exported, and emaining quantity will be in strong hands.

• Exporters are not keen to offer forward positions.

• Exporters feel that the levels we are seeing now will be the lowest; therefore, not to go short will be an advantage.

• Farmers are holding their pepper goods due to the advantage of coffee and other fruits high prices income.

• Both stock market and real estate property are not doing well, causing most buyers to invest in commodities.

• Buyers’ coverage beyond June is limited; demand recovery is to be expected during Q3 and Q4.

• Pepper plantation areas is decreasing annually while proper caring for pepper vines is neglected.

• Farming input cost significantly increased which translates to higher production cost.

• Climate change is also worsening the vulnerability of farmers.

• Considering the small pricing differences between Brazil and of Vietnam, companies based in Hochiminh will probably focus on Vietnamese Pepper especially now that Sundried material is not easily available until August month.

• Early reports indicating Indonesian next crop will be small.

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Pepper Talk: Bullish Bearish Analysis by Royal Golden © Royal Golden 2023. All Rights Reserved.