Thursday, October 10, 2024
Pepper Market October 10, 2024
Pepper Market October 10, 2024: Price drops again
October 10
Pepper price today, October 10, is around 146,000 - 147,000 VND/kg, down slightly 500-1,000 VND compared to yesterday.
Pepper prices increased by 1,500 - 2,000 VND/kg in provinces with high prices such as Dak Lak - Dak Nong - Ba Ria, remaining stable in other localities compared to the same time yesterday. After 2 consecutive days of decline in the domestic market, pepper prices have recovered and widened the gap between localities.
At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,706 USD/ton; the price of Brazilian black pepper ASTA 570 at 6,750 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,900 USD/ton.
Muntok white pepper price is 8,966 USD/ton; Malaysian ASTA white pepper price is at 11,400 USD/ton.
Vietnam black pepper price is traded at 6,800 USD/ton for 500 g/l; 550 g/l at 7,100 USD/ton; white pepper price at 10,150 USD/ton.
Vietnam Pepper and Spice Association informed that in September 2024, Vietnam imported 2,430 tons of pepper, of which black pepper reached 2,233 tons, white pepper reached 197 tons, total import turnover reached 13.6 million USD.
Compared to August, import volume increased by 63%. Olam, Phuc Sinh and Tran Chau are the three main importers. Indonesia is the largest pepper supplier to Vietnam, reaching 1,787 tons, up 460.2% compared to the previous month.
As of September 30, 2024, Vietnam imported 23,778 tons of pepper of all kinds, of which black pepper reached 20,890 tons and white pepper reached 2,888 tons, with a total import turnover of 102.0 million USD.
Compared to the same period in 2023, import volume increased by 15.8%. The main importing enterprises include: Olam Vietnam, Pearl Group, KSS Vietnam, Phuc Sinh and Lien Thanh, of which Olam holds the largest market share of 35.7%, reaching 8,498 tons, up 11.0%.
Brazil, Cambodia and Indonesia are the three main pepper suppliers to Vietnam, accounting for 90.3%, reaching 8,512 tons, 6,651 tons and 6,317 tons respectively, of which imports from Brazil decreased by 32%. Of which, imports from Cambodia increased by 95.4% and Indonesia increased by 134.2%.
According to KTĐT.vn
Wednesday, October 09, 2024
Pepper exports to China decreased by more than 84%
Pepper exports to China decreased by more than 84%
Pepper prices are at a good level compared to previous years – Photo: N.TRI
According to information from the Vietnam Pepper and Spice Association (VPSA), in the first 9 months of 2024 (cumulative from January 1 to September 1), Vietnam exported 30 tons of pepper of all kinds, of which black pepper reached 9 tons and white pepper 200.894 tons.
Total export turnover reached 991,0 million USD, black pepper reached 781,9 million USD, white pepper reached 142,1 million USD. Compared to the same period in 2023, export volume decreased by 1,7%, but gold increased by 46,1%.
The reason for the sharp increase in export value is that the average export price of black pepper in the first 9 months reached 4.852 USD/ton, white pepper 6.461 USD/ton; increased by 40,9% and 30,4% respectively compared to the same period last year.
According to VPSA, Asia is still the largest export region of Vietnamese pepper, accounting for 37,8%, reaching 75.859 tons.
However, the above level decreased by 33,7% compared to 2023, mainly from the Chinese market.
Specifically, some leading export markets in Asia such as UAE: 13.159 tons, up 41,1%; India: 9.284 tons, up 0,5%; South Korea: 5.710 tons, up 59,0%; Pakistan: 4.992 tons, up 55,8%... China alone reached 8.905 tons, down 84,1%.
Exports to the Americas reached 62.634 tons, up 49,6%, of which the United States was the largest export market with 57.289 tons, accounting for 28,5% of the market share and up 53,1% over the previous year.
Exports to European markets also recorded a sharp increase of 33,6% to 50.769 tons. Germany led the way with 12.777 tons, up 87,1%; the Netherlands: 8.065 tons, up 35,4%... The African region accounted for 5,8% of the market share, reaching 11.632 tons.
According to businesses, with 2024 exports still 3 months away, the pepper industry will certainly join the "billion dollar club", possibly even reaching 1,3 - 1,4 billion USD if pepper prices increase well (the whole year of 2023 will reach more than 912 million USD).
According to records, the domestic pepper price (dry black type) is currently commonly 152.000 - 158.000 VND/kg depending on the type (including zem), slightly down compared to more than a week ago, but more than double the same period in 2023.
Exchange with Tuoi Tre Online On October 10, a representative of VPSA said that after reaching the mark of more than 10 VND/kg in previous months, pepper prices have turned down and stayed around 200.000 - 150.000 VND/kg recently, mainly due to the impact of export activities, supply and demand, especially when many countries enter the harvest season.
“Pepper prices are still much better than in previous years, and many farmers have made high profits. However, short-term price increases and decreases may occur because this commodity is affected by many factors.”
According to many businesses, Vietnam accounts for nearly 50% of the global pepper supply. With the crop season lasting from February to April, prices may fluctuate at this time, but are forecast to remain good because the basic supply is still insufficient to meet demand.
Sources: https://tuoitre.vn/luong-ho-tieu-xuat-di-trung-quoc-giam-hon-84-20241010111033395.htm
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According to the Vietnam Pepper and Spices Association, by the end of September 9, Vietnam exported 2024 tons of pepper, including 200.894 tons of black pepper and 177.953 tons of white pepper. The total export value of pepper reached 22.941 million USD, of which black pepper accounted for 991 million USD and white pepper was 781,9 million USD.
Data from VPSA shows that pepper export value is lower than the General Department of Customs' report at the beginning of the month, causing the total turnover to not reach 1 billion USD after 9 months.
Although there is a slight difference between the two reports, both indicate that pepper exports are still slow and the Chinese market has yet to recover.
World pepper prices today
Updated world pepper prices from the International Pepper Association (IPC), at the end of the most recent trading session, IPC listed the price of Lampung black pepper from Indonesia at 6.702 USD/ton (up 0,06%), the price of white pepper Muntok reached 8.966 USD/ton (up 0,05%).
The price of Brazilian ASTA 570 black pepper was at USD 6.750/ton (down 1,46%). The price of Malaysian ASTA black pepper remained stable at USD 8.800/ton (down 1,12%); the price of this country's ASTA white pepper reached USD 11.200/ton (down 1,75%).
Vietnamese black pepper prices today are stable at a high level, trading at 6.800 USD/ton for 500 g/l; 550 g/l at 7.100 USD/ton; white pepper prices at 10.150 USD/ton.
Sources: https://baodaknong.vn/gia-tieu-hom-nay-10-10-2024-quay-dau-tang-manh-231307.html
Friday, October 04, 2024
Strike on US East Coast could disrupt global shipping
Strike on US East Coast could disrupt global shipping
04
Oct
Oct
A potential strike at US East Coast ports could disrupt the global shipping industry, with lengthy recovery times creating major challenges for supply chains and freight rates.
The potential strike at all US East Coast and Gulf Coast ports is expected to cause severe disruptions in the global supply chain, creating major problems for shipping stakeholders around the world.
As operations at 36 major US ports – which handle 40-50% of the country’s imports and exports – face the possibility of shutdown on October 1, the global shipping industry is under strain.
“If the strike goes ahead, we have reason to expect negative impacts on shippers shipping goods to the United States,” said Han Deng, a transportation partner at law firm Reed Smith. “Not only is there a potential increase in shipping costs, but we also expect this to impact retailers’ ability to meet demand for the holiday shopping season in the United States.”
Notably, in 2023, a single day of closure of US West Coast ports caused three weeks of delays, with storage times increasing by as much as 148%, according to supply chain platform Project44. Reports suggest a potential East Coast strike could last longer, possibly several weeks. Project44 estimates that recovery could take four to six weeks for each week of port closure. Similarly, Danish data firm Sea Intelligence predicts that a single day of strike action by the International Longshoremen’s Association (ILA) of America would take five days to recover.
“The impact of such a strike could linger even after it is resolved, with the disruptions mentioned taking weeks or months to restore, in a highly inflationary economy with regional conflicts and geopolitical instability,” Mr. Deng commented.
With peak shipping season already underway, Project44 analysts say it's too late to divert cargo volumes to the West Coast, jeopardizing holiday season inventories and prices.
Deng also noted that the Port of New York & New Jersey would be one of the ports most severely affected by the strike. According to the nonprofit research organization Mitre, the major U.S. port could lose about $640 million a day.
“It’s no surprise that the Port Authority of New York & New Jersey is trying to ramp up operations as much as possible ahead of the deadline,” the transportation attorney pointed out. “This includes encouraging shippers to deliver as much cargo as possible and coordinating with supply chain partners.”
According to the port authority, about $240 billion in goods are transported through the port each year.
“As we have seen with major port delays, supply chain disruptions, delayed shipping schedules, and altered shipping routes in recent history, such as the global Covid-19 pandemic and the Baltimore Bridge collapse in March 2024, the same will happen again,” the attorney said.
While it is difficult to make direct comparisons between periods, it is worth noting that the last ILA strike on the US East Coast in 1977 brought ports to a standstill for 44 days.
Source: Phaata.com
India's pepper imports soar
Pepper Market October 2, 2024: Price remains unchanged
02
Oct
Oct
Pepper
prices today, October 2, continued to fluctuate between key producing
localities. Data from the Indian Ministry of Commerce shows that India's
pepper import demand has increased sharply since the beginning of the
year and Vietnam is currently the second largest supplier to this
country.
According to the General Department of Customs, India was Vietnam's fourth largest pepper consumer market in the first eight months of the year, accounting for 4.9% of total export volume with 9,012 tons, worth nearly 41 million USD, up 11.8% in volume and up 45.6% in value over the same period last year.
According to data from the Indian Ministry of Commerce, by the end of July this year, the country's pepper imports reached 24,557 tons, an increase of 52% (8,401 tons) over the same period in 2023.
In July alone, India imported 7,130 tons of pepper, up 2.9 times compared to the same period last year. Of which, 5,088 tons were imported from Sri Lanka, a sharp increase of 5 times compared to the same period last year. Next was Vietnam with 1,414 tons, up 173%.
With a surge in July, Sri Lanka surpassed Vietnam to become the largest pepper export market to India in the first 7 months of the year with a volume of 9,567 tons, double the same period last year and accounting for 39% of the market share.
Vietnam was the second largest pepper supplier to India in the first seven months of the year with a volume of 7,988 tonnes, up 52% year-on-year and accounting for 32.5% of the market's import capacity.
In addition, India also increased 61% of pepper imports from Brazil to 4,291 tons, Indonesia increased 9.1% to 1,852 tons...
India’s pepper production is expected to reach around 60,000 tonnes in 2023-24, up around 6% from the previous year. However, India is still facing a shortage as domestic demand is expected to exceed 66,000 tonnes, putting pressure on both production and imports.
According to VietnamBiz.vn
Wednesday, October 02, 2024
REPORTED JUNE 2, 2024 - CLOVE - 2024 - NEW SEASON UPDATE
Madagascar Cloves season is about to begin and so is Brazil.
Therefore we find it very usefull to recall this report below, written in June but still very valid.
CLOVE - 2024 - NEW SEASON UPDATE.
Mutsamudu, Anjouan, Comoros, 1st June, 2024:-
The new season of Clove 2024 is about to begin.
Starting with Comoros Islands in June 2024, [June, July, August is the prime season in Comor Islands, shipment might continue up to October-November] followed by Indonesia in July & August 2024, continued with Zanzibar also in July and August, and Tanzania [Tanzania is not a big name internationally] in August September, and in Madagascar harvest starting in August and trade season in October-November - so the 2024 Clove season is on the verge.
So what is in the basket this year ? Quantity estimation and price expectation ? And how would be the demand ?
Even now, isolated enquiries and demands are in the market. Buyers in India and few Arab countries waiting to buy at around USD 8400-8600 levels ! Meaning there by, demand is still there - but just waiting for price suitability. Even though the historic concept of DEMAND AND SUPPLY should be the main factors to decide price, Clove has grown a step ahead, and only this economic factor cannot fix Clove price anymore. Clove market is witnessing too much of speculation, too much of forward selling, and equal size of market making and cycle trading as well.
Meaning thereby, price levels are created manually by these market phenomena.
Comoros, and Zanzibar, are estimated to be at normal and regular quantity in this season also ranging between 2500 Mt to 3500 Mt. Both these countries together would have roughly 6000 to 6500 [anyway less than 7000 Mt] only. And Comoros domestic market just started with a reasonably good average price level - not much below nor above the expected levels ! It is good for the market as well. I will comment on the existing price levels in origin countries in my next blog by mid of June. It is too early to declare the origin price levels.
Indonesia started at USD 9200 level, but now eased down to USD 8700-8800 level on forward offers for July shipment. Indonesia is expecting a crop size of 80,000 Mt in June to August harvest ! which is not a big crop for Indonesia. However, the slow pace of intake by the cigarette industries and very cool demand in the domestic market in Indonesia points to a lower priced market only to come up. Even if Indonesia enters the international market to import, [if so happens], there is enough stock ready available waiting Indonesia orders in Singapore and Dubai. No shortage of stock even if Indonesia imports now. Therefore, we cannot expect any surge in price even if Indonesia imports.
This year Madagascar would have good crop, a size better than last year, because of good weather, and more trees for first harvest. Cultivation is increasing in Madagascar year on year, and new area is becoming ready for first harvest every year. This would keep on Madagascar crop size in normal terms. New Season harvest would start from South Madagascar during first half of August, however, trading would begin only by end September-October. And in Madagascar, issue of Clove Export Permit to be waited to commence the trading and export season.
Based on present market intelligence and information, more than 6000 Mt Clove available in Singapore and Dubai; and roughly 3000+ Mt is available in India, which is ample to meet any demand during this off season. And new crop shipment would start with Comoros by end June or July.
TAIL END:- During March 2024, there was too much expectation around the world that after Ramdan, Clove price would shoot up to USD 10,000 level and many sellers stayed back with their stock to see these price to come. Sellers and exporters in Madagascar also spread domestically that farmers would get better price after Ramdan. My readers would recollect that in my March and April blogs, I wrote without doubt that, fundamentally and technically no chances for price to move high; there was no basic reason to expect such increase in price.
Today also my view is that clove price would continue at the average level only; no reason to go do
n much; nor any chances to move very high. Historic levels cannot repeat this year. No ground for that. Ideally one should anticipate USD 7000 to USD 9000 is the range where Clove would be traded.
Any market making or speculative market creation can make some impact for a short period, but that cannot take on the market price for very long time. It would be only a temporary phenomenon, which is now common in the commodity market.
Wish you all a happy reading and wait for next blog by mid June with price indications.
Tuesday, October 01, 2024
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