VIETNAM SPICES MARKET UPDATE 18TH JAN 2021 – WEEK 3

 

 

PEPPER

Market opening this week firmer tone with good demand 
from EU/ASIA especially from China. 
Exporters covering for January shipment when crop coming slowly.

 

Regarding final Vietnam Customs data, pepper exports in 
December 2020 reached 20,742 tons, down 2,188 tons, 
or a decrease of 9.54% over the previous month but increased by 4,079 tons, 
which is 24.48% higher than the same period last year December 2019.

The value of pepper export turnover in December reached 57.40 million USD, 
down 3.09 million USD, or 5.10% lower than the previous month 
but increased by 17.24 million USD, or 42.93% higher than the same period last year.

Cumulative export volume of pepper for the whole year 2020 
reached 285,292 tons, up 1,002 tons, or 0.35% higher than 
the export volume of the whole year in 2019. 
However, the value of export turnover was only 660.57 million USD, 
a decrease of 53.58 million USD or 7.50% decrease compared 
to the export turnover of 2019.

VIETNAM PEPPER EXPORT FROM 2011 TO 2020
DATA			COMPARE WITH PREVIOUS YEAR ( %)
Year	Quantity (metric ton)	Value (usd)	Quantity	Value
2011	123,808	732,212,823	5.90	73.80%
2012	116,800	793,417,493	-5.70	8.40%
2013	132,955	889,775,618	13.80	12.10%
2014	155,125	1,201,308,259	17.00	35.10%
2015	123,619	1,260,815,866	-14.40	5.00%
2016	177,893	1,429,351,271	35.30	13.50%
2017	214,843	1,117,380,584	20.80	-21.80%
2018	232,769	758,878,043	8.30	-32.10%
2019	284,290	714,145,995	22.10	-5.90%
2020	285,292	660,568,955	0.40	-7.50%

 

VIETNAM SPICES MARKET UPDATE 11TH JAN 2021 – WEEK 1&2

 

PEPPER 

Pepper exports in December 2020 reached 23 thousand tons, worth 62 million USD, up 0.3% in volume and 2.5% in value compared to November.

Approximately pepper export in 2020 is estimated at 288 thousand tons, worth 665 million USD, up 1.2% in volume. The average export price is estimated at 2,313 USD/ton, down 7.9% compared to 2019.

Pepper prices from the first week of 2021 are being affected by the news of the Covid-19 epidemic and trade tensions between major countries.

Due to the closure of the countries due to Covid-19 and the political situation in the US and UK, the strained US-China relations affected goods greatly.

At this time, the low price caused speculators to increase buying, but the transaction was still quite bleak.

Vietnam's pepper prices in the short term will be quiet in the absence of supportive factors. The main reason for the recent price drop is the tension situation of the shipping charges and the shortage of containers. Many routes to EU/AFRICA/USA… increased galloping with an increase of 500-7,000 $ per container of export cargo. There is a 1000% increase in just 30 days with some destination in ASIA. This situation may continue, causing the fact that pepper produced in Vietnam cannot be exported much to other countries. Materials are clogged in production warehouses and at ports of destination because some shipping agents cancelled booking/increase price without reason.

Besides, the present time the key pepper province of Vietnam is Daknong province has starting the harvest season, so the export price of pepper lacks a supporting factor.

However, price of pepper at spot market up daily and many customer shortage stock to process because almost all waiting reduce for cost freight. We might be seen huge demand will come again in the market when freight/container space back to normal.

In the medium term, global pepper production will continue to decline as top producing countries do not implement new planting, while the maintenance of existing pepper farms is not focused, many pepper farmers are not growing also focus on profession because the price now not attractive to the farmer. If this situation continues in the next years, the price of pepper will tend to increase in 2021 & 2022.

The exchange rate of Vietnam currency in 2021 is forecast to be about 2% stronger than USD, which will also an increase price in exports from Vietnam compared to previous years.

 

India
India's pepper production in 2021 is likely to be significantly lower than in 2020, The reason is that the cultivation and production of pepper is affected by erratic climate, typically strong winds and heavy rain in Idukki, Wayanad, Coorg districts and some areas in Karnataka state. Currently, the new harvest on the farms is coming. However, many farmers are delaying the harvesting process due to unfavorable weather.

CASSIA 
The market continues to grow strongly when demand is high but inventories have decreased rapidly. Raw material prices are forecasted to continue to rise as demand is high from the EU/USA and ASIA.

 

STAR ANISE

The market increased rapidly due to strong demand, in addition to a serious crop failure in spring due to storms and droughts. It is expected that the price of anise will continue to increase in 2021 while there is very little inventory.

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IPC MKT REPORT 02/21, 4 - 8 January 2021

 

LOCAL MARKET

Market this week showed a mixed response with only India and Viet Nam black pepper FOB price was reported with a decrease. In local market, Malabar black pepper was reported with 1% deficit as compared to the previous week, at an average of USD 4,494 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively when compared to the previous week, averaging at USD 2,508 per Mt for black pepper and USD 4,157 per Mt for white pepper. Malaysia black and white pepper were also reported with an increase of 1% respectively as opposed to the previous week, to an average of USD 2,332 per Mt for black pepper and USD 3,822 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported stable, averaging at USD 2,259 per Mt for black pepper and USD 3,050 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 2% as compared to the previous week and was traded at an average of USD 2,849 per Mt. China white pepper was report ed stable and was traded at an average of USD 5,100 per Mt locally.

INTERNATIONAL MARKET

International market was also reported with a mixed response as India black pepper was reported with the same 1% deficit as compared to the previous week, at an average of USD 4,768 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively when compared to the previous week, averaging at USD 3,033 per Mt for black pepper and USD 4,869 per Mt for white pepper. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l and 550 g/l were reported with 1% deficit respectively as opposed to the previous week, averaging at USD 2,835 per Mt and USD 2,916 per Mt respectively. Whilst, Viet Nam white pepper were reported stable at an average of USD 4,405 per Mt. China white pepper was reported stable with a marginal increase and was traded at an average of USD 5,300 per Mt. 

 

 

 

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SEASON GREETINGS

 

VIETNAM BLACK PEPPER CROP SURVEY 2020 & 2021 District 2, Hochiminh City, Vietnam.

 

PTEXIM CORP. made an extensive survey of the Vietnam Pepper production areas with the actual situation of the stocks,and plantatiom of cultivated areas foreseing the production and results of the new crop which will be harvested from the beginning of next year.
Below we post the consolidated data and main numbers.
You may get the full & detailed report (42 pages in PDF) by clicking the link at the end of our info

* CROP SIZE 2021 SMALLER BY 20% COMPARED TO 2020
* MAXIMUM ESTIMATED CARRY OVER FORCAST: 45,000 TON
* CARRY-OVER SMALLER BY 40-50% COMPARED TO LAST YEAR

TOTAL AVAILABLE QUANTITY IN VIETAM IN 2020 - 340,000 Mt

- CARRY-OVER FROM 2019 -75,000 Mt
-CROP SIZE 2020 - 225,000 Mt
-IMPORT FROM THIRD COUNTRIES - 40,000 Mt

2020 VIETNAM EXPORTS & CONSUMPTION -292,000 Mt

- DOMESTIC CONSUMPTION - 10,000 Mt
- WHITE PEPPER PROCESS - 8,000
- EXPORTS - 280,000 Mt

ESTIMATED TOTAL AVAILABLE PEPPER IN VIETNAM FOR 2021 - 242,000 Mt

- CARRY-OVER FROM 2020 - 42,000 Mt
- ESTIMATED CROP SIZE - 200,000 Mt
- MAXIMUM CARRY OVER THIS YEAR AS FORECAST 45.000 MTs
Carry over concentrate almost 80 – 90% in middle man and processor/exporters warehouse.
Almost farmer cleared stock already.

Pepper crop affected because farmers are less caring, less fertilizing than beforedue to low prices under cost, intercropping with other fruit trees... the string ofpeppercorn was sparse, the phenomenon of sparse string in pepper spreading fromalmost all key pepper areas of Vietnam.
In addition, the price was low while the labor cost increases steadily every year.
It will significantly affect the yield for the 2021 & 2022 crop.

Pepper prices are lower than production costs, so farmers neglect and do not take careas well as before

Pepper prices will continue to fluctuate at different times. However, the back bottom price will be higher than the previous one and the price increase trend will be about 10-25% next year as foreseen as the crop is severely affected in 2021.

If the price grows well next year, it will stimulate the farmers to re-care and the crop will gradually improve in 2022/2023


PHUC THINH EXPORT IMPORT INVESTMENT CORPORATION (PTEXIM CORP)

 

GET THE FULL REPORT, CLICK HERE
http://ptexim.com.vn/en/news/viet-nam-pepper-crop-survey-2020-2021/

 

IPC NKT REPORT No. 50/20, 7 -11 December 2020

 

MARKET REPORT

Market this week showed a mixed response. In local market, Malabar black pepper was reported with an increase of 1% when compared to the previous week at an average of USD 4,532 per Mt. Indonesia black pepper was reported with an increase of 1% as compared to the previous week averaging at USD 2,158 per Mt. Whilst, Indonesia white pepper was reported stable at an average of USD 3,962 per Mt. Malaysia black and white pepper were reported with an increase of 6% and 4% respectively as opposed to the previous week to an average of USD 2,304 per Mt for black pepper and USD 3,775 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported with 1% deficit when compared to the previous week averaging at USD 2,358 per Mt. Whilst, Viet Nam white pepper was reported stable at an average of USD 3,468 per Mt. Sri Lanka black pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 2,985 per Mt. China white pepper was reported with an in crease of 7% as opposed to the previous week and was traded at an average of USD 5,169 per Mt locally.

INTERNATIONAL MARKET REPORT

International market showed a rather stable outlook as India black pepper was reported with the same increase of 1% when compared to the previous week at an average of USD 4,804 per Mt. Indonesia black pepper was reported with an increase of 1% as compared to the previous week, averaging at USD 2,631 per Mt. Whilst, Indonesia white pepper was reported stable averaging at USD 4,649 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable at an average of USD 2,815 per Mt, USD 2,896 per Mt and USD 4,385 per Mt respectively. China white pepper was reported with an increase of 6% when compared to the previous week and was traded at an average of USD 5,369 per Mt. 

 

 

VIETNAM SPICES MARKET UPDATE 7TH DEC 2020 – WEEK 50

 

PEPPER

Vietnam exported reached 21 thousand tons in November, 
worth $ 53 million, down 4.5% in volume and 1.1% in value compared to October. 
However, compared with November 2019 increased 23.6% in volume and 33.5% in value. 

In the first 11 months of 2020, pepper exports were estimated at 263 thousand tons, worth $ 596 million, down 1.7% in volume and 11.5% in value over the same period in 2019.

Average pepper export price in November was estimated at 2,543 USD/ton,
up 3.6% over October and up 8.1% compared to November 2019.

In the first 11 months of 2020, the average export price of pepper was estimated
at 2,268 USD/ton, down 10% over the same period in 2019.

Pepper prices last week, after increasing by 5%, had corrections
down by 3% for the 49th week.

The main reason was that exporters had covered enough production orders for November shipment. In addition, the situation of freight to other countries continues to increase and it is difficult to get the booking from shipping agent, which has caused the cargo to stuck at the processor and at the port.

Most are waiting for the cost freight adjustment in December, but as information we received, the freight will continue to remain at a very high price in the next 2-3 months at least.
There is a shortage of empty containers and a sudden drop voyage from Vietnam to other destination is seriously.

 

We would like to send you flowchart Vietnam Pepper first 10 Months 2020 as below;

 

 

2/ CASSIA; 

 

Market steady/uptrend continuing in the short term even demand slow because new crops still have to wait until the next 4 months. Stock in tight situations, farmers/collectors  not prefer to offer in bulk.

 

3/ STAR ANISE;

 

Demand very slow especially from China and market correction 15% within 2 weeks. Buyers hesitate and not willing to pay at these level.

 

4/ TURMERIC;

 

New crop will be starting next month and we can offer you different grade with low/high curcumin standard such as TURMERIC FINGER/POLISHED TURMERIC FINGER, TURMERIC POWDER, TURMERIC SLICE SUN DRIED, WASHED TURMERIC SLICE SUN DRIED, TURMERIC SLICE MACHINE DRIED...

 

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