VIETNAM - PEPPER MARKET UPDATE 25TH MARCH 2020 – WEEK 13

Vietnam As the outbreak of Corona Virus continued to widely spreading, global pepper & spices business has continued to slow down. Market this week showed with no origins reported an increase.

Vietnam's pepper market had mixed movements throughout the week with a negligible price decrease as almost exporters continued to have to participate to cover raw material for all shipment in March and April. We would not be surprised if Vietnam's exports would reach over 35,000 tons pepper this month.

As many countries have closed and difficulties in customs clearance due to Coronavirus, pepper is also an agricultural food product so basic consumption is still a priority. In addition, the current price is very low, below the production cost of most farmers so the pepper price has almost not decreased. However, as many countries, the Vietnam currency has been weaker 1.5% than the US dollar last week make the price is more competitive compared to other countries.

China The government is in better control of the disease so demand from China has been increasing steadily and warm up over the past 2 weeks. It is forecast that China will have to buy a large amount of pepper when the disease situation is under controlled in the coming time because China only imported more than 2,000 tons of pepper in the first 3 months from Vietnam (While the first 3 month of 2019 imported 13,263 tons - a shortage of over 11,000 tons compare the same period).

USA Customers looking to cover whole year shipment but exporters/processor hesitating due to price does not meet and risky when market correction and rebound again.

India/Nepal has lockdown from yesterday and open next 3 weeks so no demand now.

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