PEPPERTRADE SPICES BOARD BLOG #Pepper #Spices: VIETNAM SPICES MARKET UPDATE 14th APRIL 2021

Wednesday, April 14, 2021

VIETNAM SPICES MARKET UPDATE 14th APRIL 2021 – WEEK 15

PEPPER

According to VPA statistics, Vietnam exported 31,413 tons of pepper in March, worth 92.7 million USD.
Compared to February 2020, the export volume increased by 133.9%, the value increased by 138.2%.

In the first 3 months of 2021, Vietnam exported 61,621 tons, worth 180 million USD.
Compared to the same period in 2020, the quantity of exports decrease by 23.4% but the turnover increases by 2.2%.

The US continues to be the largest pepper import market of Vietnam with the import volume of 13,933 tons, up 0.8% over the same period Followed by the Chinese market imported 11,506 tons, down 2.9%.
Some markets with increased import volume such as Saudi Arabia, Netherlands, UK, Ireland, Canada,…
decreased import volume in Pakistan, India, Germany, Thailand, Philippines, Korea,…
Leading import of white pepper are the Netherlands, America, Germany and China.

The market for pepper in the past week has taken place slowly as demand is quite low from different markets especially from Europe / America.
Currently, the COVID-19 disease situation is complicated in many different countries such as EU / INDIA / BRAZIL...

The freight price continues to increase although the Suez Canal incident has been resolved.
Currently, the freight rate continues to increase and it is very difficult to book container to EU and especially the US routes. ( USA up 3000$ in some port such as New York/Baltimore...

At present, farmers have been offering to sell more raw material to the market, but both buyers and sellers are very cautious.
The EU and US have also shown interest in third & fourth quarter deliveries, but domestic manufacturers and exporters mostly offer prompt shipment. to avoid delays of orders and broken commitments from not reliable farmers / dealers.
Currently, the transaction takes place with a very fast delivery speed.
That's why agents and export / manufacturers lack local liquidity.
Many companies are unable to receive raw material and pay for raw materials in bulk.
Particular have some exporters sold raw material back to the domestic market to take cash (not take profit).
Therefore, the market has had a slight correction and easier to buy this week.