Ministry of Industry and Trade: Vietnam pepper market will benefit in pr...

 

Ministry of Industry and Trade: Vietnam pepper market will benefit in price because of scarce supply

Posted onAugust 8, 2024by VPA

08
Aug

The Import-Export Department (Ministry of Industry and Trade) stated that the scarce supply could help the Vietnamese pepper market benefit in price. This can also open up opportunities for Vietnam to increase market share, further strengthening its position in key markets such as the US, China and Europe.

According to the Import-Export Department  (   Ministry of Industry and Trade), the global pepper supply is supplemented when Indonesia enters the harvest season, starting in July. However, Brazil, the second largest black pepper producing country in the world, world, is facing continuous crop failures due to drought.

According to some farmers in the Espirito Santos region (Brazil), the harvest in 2024 may be 25-30% lower due to the heat causing most of the first cotton to fall and the ratio of fruit set to cotton to decrease. Phase 2 and phase 3 are quite low so it is expected to only reach about 70% compared to last year. Overall, the whole country in 2024 could decrease by 20-25% compared to 2023.

According to experts, signs of supply shortage compared to demand will continue to be recorded in the market in the near future. In addition, rapidly rising  freight  costs  and port congestion in Asia also impact prices in import markets, and can cause shipping delays, causing prices to increase in the medium to long term. term.

The Pepper and Spice Association (VPSA) said data showed that by the end of July, Vietnam had  exported   an estimated 164,300 tons, with a turnover of 652 million USD, down 2.2% in volume but up 41%. % in value compared to the same period in 2023. The association estimates that Vietnam's pepper output in 2024 will only reach about 170,000 tons, down 10% compared to the previous year, this is also the lowest level in the last 5 years.

 Source: VPSA (compiled by US)

Meanwhile, there are still about 6 months left until the new harvest (expected after the Lunar New Year from February 2025) while the amount of goods remaining with people, agents and businesses is not as much as VPSA previously assessed. This.

Mr. Le Duc Huy - General Director of 2/9 Dak Lak Import-Export Company Limited - Simexco said that Vietnam's inventory is about 30%, equivalent to 50,000 - 55,000 tons.

The Import-Export Department said that Vietnam's pepper industry will enjoy price benefits in the near future due to scarce supply. This can also open up opportunities for Vietnam to increase market share, further strengthening its position in key markets such as the US, China and Europe.

According to VPSA, the lack of supply will cause  pepper prices   in the near future to continue to have unusual fluctuations like on June 11 when the price increased sharply by 20,000 VND/kg in the morning but dropped sharply in the afternoon. return.

However, Mr. Huy said that in the first half of this year, Vietnam's traditional purchasing markets imported large amounts of pepper. This means that they are not in a hurry to buy more goods and are waiting.

Therefore, this person believes that although the supply shortage continues, pepper prices will hardly increase as strongly as at the beginning of the year.

“It is likely that pepper prices will remain at this level in the near future. Farmers still expect prices to increase dramatically again, but personally, in my opinion, this is very difficult," Mr. Huy said.

According to VietnamBiz.vn

Pepper market on August 6, 2024

 

Pepper market on August 6, 2024: shocking developments, pepper prices dropped sharply

Posted onAugust 6, 2024by VPA

06
Aug

Pepper price today, August 6, is in the range of 138,000 - 139,000 VND/kg. The domestic market changed unexpectedly. Exports show no signs of improvement. The amount of pepper exported to China is still low, falling sharply compared to the previous month.

Yesterday session, most assets plummeted, stock exchanges collapsed, USD fell sharply, gold prices fell freely... This development is contrary to the usual rule: When the USD increases, gold decreases and vice versa. . The world stock market just experienced a terrible drop in trading sessions on August 5, which can be said to be the worst in decades.

The above impacts have affected the pepper market in particular and other commodity exchanges in general.

The Vietnam Pepper and Spice Association informed that in July 2024, Vietnam exported 21,771 tons of pepper of all kinds, black pepper reached 19,371 tons, white pepper reached 2,400 tons.

Total export turnover reached 129.9 million USD, black pepper reached 112.2 million USD, white pepper reached 17.7 million USD. Compared to June, export volume decreased by 22.7% and turnover decreased by 7.9%. Compared to the same period in July 2023, export volume increased by 43.7% and turnover increased by 128.9%.

The average export price of black pepper in July reached 5,861 USD/ton, white pepper reached 7,558 USD/ton, an increase of 15.7% for black pepper and 9.2% for white pepper compared to the previous month.

Olam was the leading export enterprise in July reaching 2,689 tons, up 6.9% over the previous month and accounting for 12.4% of export proportion. Next are businesses: Phuc Sinh: 2,441 tons, Nedspice Vietnam: 1,886 tons, Haprosimex JSC: 1,787 tons and Simexco Dak Lak: 1,714 tons...

The US is still Vietnam's largest export market in the month, accounting for 27.2% reaching 5,914 tons, followed by the following markets: UAE: 2,509 tons, Germany: 1,415 tons, Netherlands: 940 tons, France: 936 tons . Exports to China only reached 606 tons, down 76.5% compared to June.

In the past 7 months, Vietnam has exported 164,357 tons of pepper of all kinds, of which black pepper reached 145,330 tons and white pepper reached 19,027 tons. Total export turnover reached 764.2 million USD, black pepper reached 652.0 million USD, white pepper reached 112.2 million USD.

Compared to the same period in 2023, export volume decreased by 2.2%, but export turnover increased by 40.8%. The average export price of black pepper in 7 months reached 4,568 USD/ton, white pepper reached 6,195 USD/ton, up 32.7% for black pepper and 25.0% for white pepper respectively compared to the same period last year. .

The US is Vietnam's largest pepper export market in 7 months, increasing by 48.4% and accounting for 26.4% of the market share reaching 43,349 tons. Next are the following markets: Germany: 10,941 tons, up 97.3%; UAE: 10,897 tons, up 39.2%; India: 8,744 tons, up 39.7%; China ranked fourth with 8,059 tons, down 84.6% over the same period.

Leading pepper exporters include: Olam Vietnam: 15,967 tons, an increase of 56.3%; Phuc Sinh: 13,780 tons, up 50.9%; Nedspice Vietnam: 12,235 tons, up 14.5%; Haprosimex JSC: 11,841 tons, up 68.3% and Pearl: 10,039 tons, down 9.3%...

Some businesses have impressive export volumes such as Simexco Dak Lak: 8,229 tons, an increase of 227.1%; Sinh Loc Phat increased by 144.5%; Ottogi Vietnam increased by 138.2%; Imtex Vietnam increased by 136.5%; Hanfimex increased by 121.3%; Intimex Group increased by 115.2%…

According to KTĐT.vn

Pepper market update 5th August 2024 – Week 31.

 

We would like to send you a quick highlight

•        Last week, the price of pepper continued to decrease from 153,000 VND to 148,000 VND, corresponding to a decline of 3.3%.

•        Demand has started to return in key markets such as the US and the EU. However, demand remains very sluggish in the Middle East and China.

 •        The poor liquidity situation and slow capital flow for pepper have led to a rather sluggish market in the past week.

 Other:

The price of pepper in Vietnam continued to decrease by 3.3% last week due to weak demand in most markets. Additionally, the international market has been receiving quite negative information, such as the risk of war and issues related to maritime transport, including freight rates and extended shipping routes, with no clear timeline for normalization.

 

Furthermore, pressure from pepper supply in various markets has contributed to the price drop last week. It is forecasted that the market will remain quite sluggish in the coming weeks.

 

In addition, many reports in the market indicate that the Fed will begin to lower interest rates in September and the upcoming fourth quarter 2024. This has caused the VND to strengthen against the USD by about 1% last week, making the price of pepper converted to USD more expensive.

 

 

 

Pepper market on August 3, 2024

 

Pepper market on August 3, 2024: the opposite face of pepper prices in Southeast Asian countries

Posted onAugust 3, 2024by VPA

03
Aug

Pepper price today, August 3, is in the range of 146,000 - 147,000 VND/kg. After decreasing in the past 3 weeks, domestic and international Indian pepper prices both tended to increase this week. Harvests in Brazil and Indonesia are forecast to have lower yields due to unfavorable weather conditions.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 7,176 USD/ton; Brazilian black pepper price ASTA 570 is at 6,750 USD/ton; Kuching (Malaysia) ASTA black pepper price is 8,500 USD/ton.

Muntok white pepper price 8,793 USD/ton; Malaysian ASTA white pepper price is at 10,400 USD/ton.

The price of Vietnamese black pepper is trading at 6,000 USD/ton for 500 g/l type; type 550 g/l at 6,600 USD/ton; White pepper price is at 8,800 USD/ton. During the weekend session, while Vietnam's domestic market decreased, IPC continued to adjust pepper prices in Indonesia and Malaysia.

IPC commented that this week's pepper market continues to have mixed reactions. After decreasing in the past 3 weeks, domestic and international Indian pepper prices both tended to increase this week. Meanwhile, Indonesian black pepper prices have been stable in recent weeks.

Information about crops in different countries, the Vietnam Pepper and Spice Association said that in Brazil, the harvest in the states of Espírito Santo and Bahia has ended with output 10% lower than last year. due to the impact of the El Nino drought phenomenon at the beginning of the year.

Brazil is continuing to harvest in the Espirito Santos region and in November in the Para region. It is estimated that this country will collect about 60 thousand more tons. It is forecasted that climate change (La Nina) will affect the production of Brazilian pepper in the coming months.

Indonesia is expected to harvest in August (slower than usual from July) but the output is not satisfactory. In the first 5 months of 2023, Indonesian pepper exports reached 15,643 tons, an increase of 48.3% over the same period last year. Main export markets include: China accounting for 20.1%; Vietnam accounts for 17.5%; The US accounts for 17.3% and India accounts for 10.3%.

In the first 6 months of 2024, the average FOB price of Indonesian black pepper has increased continuously since February with an increase of 16% compared to the second quarter of 2023 and an increase of 30% compared to the first quarter of 2023. Similarly, the average FOB price of Indonesian white pepper also increased by 9% and 5% compared to the first quarter of 2023 and the second quarter of 2023, respectively.

According to KTĐT.vn

 

 

 

Pepper market on August 2, 2024

 

The Pepper market on August 2, 2024 slowed down after the previous day's decline

Posted onAugust 2, 2024by VPA

02
Aug

Pepper prices today stood still.

Update pepper prices

In the domestic market

Latest records,   today's pepper prices moved sideways on a large scale.

Currently, the highest transaction level is 149,000 VND/kg, continuing to be recorded in Dak Lak, Dak Nong, Ba Ria - Vung Tau and Dong Nai.

Traders in Gia Lai and Binh Phuoc are still trading pepper at 148,000 VND/kg.

Province/district (survey area)	Purchasing price (Unit: VND/kg)	Change compared to yesterday (Unit: VND/kg)
Dak Lak	149,000
Gia Lai	148,000
Dak Nong	149,000
BA Ria Vung Tau	149,000
Binh Phuoc	148,000
Dong Nai	149,000

On the world world market

According to an update from the International Pepper Association (IPC) on August 1 (local time), the trading price of Lampung black pepper (Indonesia), the purchasing price of Brazilian black pepper ASTA 570 and the price of Kuching black pepper (Malaysia) ASTA remained stable compared to July 31.

Type name	World black pepper price list (Unit: USD/ton)
	July 31	August 1	% change
Lampung black pepper (Indonesia)	7,150	7,172	+0.31
Brazilian black pepper ASTA 570	6,850	6,850	0
Kuching black pepper (Malaysia) ASTA	7,500	7,500	0

At the same time of the survey, the purchasing price of Muntok white pepper increased by 0.31% and the price of Malaysian ASTA white pepper had no new changes.

Type name	World white pepper price list (Unit: USD/ton)
	July 31	August 1	% change
Muntok white pepper	8,761	8,788	+0.31
ASTA Malaysian white pepper	8,800	8,800	0

In the second quarter of this year, domestic pepper prices witnessed a record increase from 92,000 - 94,000 VND/kg in early April to 180,000 VND/kg on June 11, corresponding to an increase of 90% in just over two months and is highest level in the past 8 years. After that, pepper prices adjusted back down to 153,000 - 157,000 VND/kg at the end of June.

Thus, by the end of the second quarter, domestic pepper prices had increased by about 93% compared to the beginning of the year and 2.3 times higher than the same period last year.

Pepper prices have skyrocketed in recent times mainly due to concerns about global supply shortages, especially in the two countries that determine the world's supply, Brazil and Vietnam, both of which have reduced output due to the influence of factors such as El Nino weather causes drought. Meanwhile, demand is increasing in some large consumer markets such as the US and EU.

According to VietnamBiz.vn

 

How much does Vietnam buy Brazilian pepper?

Posted onAugust 2, 2024by VPA

02
Aug

Despite recording an increase of 19%, Brazil's pepper export price to Vietnam is the lowest price among the top 15 importing countries of this country?

Vietnam is the largest pepper exporter to the United States

According to the International Trade Center (ITC),  pepper exports  from the world's main producing countries have contradictory patterns. In the first half of 2024, the two leading exporting countries in the world, Vietnam and Brazil, decreased by 6.8% and 6.0%, respectively. In the same direction, Malaysia's exports also decreased by 8.1%, while Indonesia and India's exports increased by 48.3% and 34.1%.

Vietnam is Brazil's largest pepper buyer

Compared to the same period in 2023, in the first 6 months of 2024, the average FOB price of black pepper and white pepper in most main producing countries increased sharply, except India. Specifically, the average FOB price of black pepper increased by 27% and the average FOB price of white pepper increased by 14% over the same period last year. The strongest increase was recorded in Brazilian black pepper, followed by Vietnam and Indonesia.

Global pepper trade from the beginning of the year until now recorded a decrease of more than 20% compared to the same period in 2023. The largest decrease came from the Chinese market, down 85%, mainly because this country reduced imports from Vietnam.

The United States  is the largest pepper consuming market in the world, of which Vietnam is the largest exporter to the United States accounting for 75.8%, followed by India accounting for 8.5%, Indonesia accounting for 8.4%. and Brazil accounts for 4.0%.

The price of Brazilian pepper exported to Vietnam increased by 19%

In Brazil, the harvest ended in the states of Espírito Santo and Bahia with yields 10% lower than last year due to the impact of the El Nino drought phenomenon at the beginning of the year.

Brazil is continuing to harvest in the Espirito Santos region and in November in the Para region, it is estimated that the whole country will collect about 60 thousand more tons. Climate change (La Nina) will affect the production of Brazilian pepper in the coming months.

According to some farmers in the Espirito Santos region, the harvest in 2024 may be 25-30% lower due to the heat causing most of the first cotton to fall and the ratio of fruit set to buds of the second and second cotton blooms. Phase 3 is quite low so it is expected to only reach about 70% compared to last year. Overall, the whole country in 2024 may decrease by 20-25% compared to 2023.

In the first 6 months of 2024, Brazilian pepper exports reached 37,181 tons, turnover reached 141.7 million USD, down 6.0% in volume but up 21.4% in value compared to the same period last year.

Brazil's main export markets include: Vietnam reached 5,910 tons, accounting for 15.9%, down 21.5% over the same period. Next is the market reaching India: 3,892 tons, accounting for 10.5%, an increase of 47.2%; Pakistan reached 3,703 tons, accounting for 10.0%, an increase of 63.3%; Senegal reached 3,659 tons, accounting for 9.8%, down 19.6% and Morocco reached 3,565 tons, accounting for 9.6%, down 9.5%...

Exports to Egypt, the Netherlands, and Mexico decreased while exports to the UAE and Germany increased, especially exports to the United States increased by 701.1% to 1,402 tons, however compared to the same period in 2022, it reached 3,002 tons. export volume decreased by 53.3%.

 The average Brazilian pepper export price in the first 6 months of the year reached 3,810 USD/ton, up 29.3% over the same period last year, of which the export price in June increased by 31.1% compared to January 2024. Notably, the average price of Brazilian pepper exports to Vietnam reached 3,488 USD/ton, an increase of 19.0% over the same period in 2023 and this is the lowest price among the top 15 importing countries, lower than the UAE. : 4.0%; India: 7.8%; Netherlands: 8.8%; United States: 9.2% and Germany: 17.5%.

In Vietnam, Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association - said that Vietnam's pepper exports  in the first 6 months of 2024 reached 142.5 thousand tons compared to the year's harvest. 2024 will reach about 170 thousand tons, the remaining output is estimated to reach about 28 thousand tons.

Inventories from the 2023 crop combined with imports in 2024 of about 40-45 thousand tons (including quota imports) show that the source of exported goods from August until the end of the year will be lower than every year and until March. /2025 when the 2025 crop is expected to be harvested. It is forecasted that pepper prices  will have unusual fluctuations such as on June 11, the price increased sharply by 20,000 VND in the morning but dropped sharply again in the afternoon.

The domestic pepper market in the early days of August was still trading around the 147,000 - 150,000 VND/kg mark although many comments about supply shortages in the country and the world were still being made. Currently, both sellers and buyers are waiting for the latest market movements when Indonesia is expected to harvest the pepper crop in August.

Some experts continue to comment that signs of supply shortage compared to demand will continue to be recognized and reflected by the market in the coming time until the end of the season. Currently, Brazil has 3 sterilized pepper factories and is building 2 more factories and will be completed in 2025. In the future, Brazilian pepper will compete better with Vietnam, so imported supply will less, so Vietnamese businesses need to proactively source raw materials.

According to Congthuong.vn

 

 

 

Pepper market on July 31, 2024

 

Pepper market on July 31, 2024, pepper prices stagnated for 4 consecutive sessions

Posted onJuly 31, 2024by VPA

31
Jul

Pepper price today is stable in the range of 149,000 - 150,000.

Update pepper prices

In the domestic market

Latest records,  today's pepper prices  continue to move sideways nationwide.

Currently, traders in Dak Lak, Ba Ria - Vung Tau, Dong Nai and Dak Nong continue to buy pepper at the highest price of 150,000 VND/kg.

Lower at 149,000 VND/kg is the purchasing price in Gia Lai and Binh Phuoc provinces.

Province/district (survey area)	Purchasing price (Unit: VND/kg)	Change compared to yesterday (Unit: VND/kg)
Dak Lak	150,000	–
Gia Lai	149,000	–
Dak Nong	150,000	–
BA Ria Vung Tau	150,000	–
Binh Phuoc	149,000	–
Dong Nai	150,000	–

On the world world market

According to an update from the International Pepper Association (IPC) on July 30 (local time), the trading price of Lampung black pepper (Indonesia), the purchasing price of Brazilian black pepper ASTA 570 and the price of Kuching black pepper (Malaysia) ASTA remained stable compared to July 29.

Type name	World black pepper price list (Unit: USD/ton)
	July 29	July 30	% change
Lampung black pepper (Indonesia)	7.153	7,138	-0.21
Brazilian black pepper ASTA 570	6,950	6,950	0
Kuching black pepper (Malaysia) ASTA	7,500	7,500	0

At the same time of the survey, the purchasing price of Muntok white pepper decreased by 0.21% and the price of Malaysian white pepper ASTA had no new changes.

Type name	World white pepper price list (Unit: USD/ton)
	July 29	July 30	% change
Muntok white pepper	8,765	8,747	-0.21
ASTA Malaysian white pepper	8,800	8,800	0

Brazil's pepper export price to Vietnam reached an average of 3,488 USD/ton, up 19% compared to the first half of last year, but the lowest among the top 15 countries importing pepper from Brazil. At the same time, it is significantly lower than Vietnam's average export price of 4,454 USD/ton to the international market during the same period.

Other leading pepper export markets of Brazil in the first half of 2024 include: India reaching 3,892 tons, an increase of 47.2%; Pakistan reached 3,703 tons, an increase of 63.3%...

In addition, the amount of pepper shipped to the US and EU increased sharply. Specifically, exports to the US increased nearly 8 times to 1,402 tons, to Germany increased 14.8%, to France increased 37.1%, to Italy increased 150%. However, some other markets such as Senegal, Morocco, Egypt, the Netherlands... witnessed a decline.

Brazil is currently the second largest pepper producer and exporter in the world after Vietnam, accounting for 17-18% of global supply. However, the country's pepper exports are facing the risk of a decline for the third consecutive year due to crop failure.

It is expected that Brazil will enter the next harvest in August in the Espirito Santos region and in November in the Para region. It is estimated that Brazil will collect about 60,000 more tons.

According to VietnamBiz.vn