After continuously collecting Vietnam’s pepper, Chinese traders suddenly reduce their purchases. This has caused the pepper prices in the domestic market in June 2023 to drop sharply.
PRICES DROPPED AS CHINA BUYS LESS
According to the Import-Export Department (Ministry of Industry and Trade), in June 2023, the price of black pepper in the domestic market dropped sharply due to the decrease in demand from China.
The sudden decline of Chinese traders in buying pepper caused the prices in the domestic market in June 2023 to drop sharply.
According to the Vietnam Pepper Association, the continuous purchase from the beginning of the year to now (reaching nearly 50,000 tons) shows that China’s reserves are possibly almost enough so they do not need to buy more.
Besides, the EU’s decision not to import agricultural products linked to deforestation negatively affects pepper prices.
In June 2023, the price of black pepper in the domestic market dropped sharply compared to the end of May 2023. In Dong Nai and Ba Ria – Vung Tau, the price of black pepper decreased by 2,500 VND/kg, to 69,000 – 71,500 VND/ kg; in Gia Lai and Binh Phuoc, the price also decreased by 3,000 VND/kg, to 68,500 – 70,500 VND/kg; in Dak Lak and Dak Nong, the price decreased by 3,500 VND/kg, to 69,500 VND/ kg.
The price of white pepper is at 103,000 VND/kg, down 3,000 VND/kg compared to the end of May 2023 and lower than 109,000 VND/kg in the same period last year.
Statistics of the General Department of Customs show that, in June 2023, Vietnam’s pepper exports reached 25,000 tons, worth 92 million USD. This result decreased by 13.6% in volume but increased by 2.0% in value compared to May 2023. Compared to June 2022, it increased by 3.4% in volume but decreased by 8.2% in value.
In the first 06 months of 2023, Vietnam’s pepper exports are estimated at 156,000 tons, worth 498 million USD, up 26.6% in volume, but down 11.0% in value compared to the same period last year. In June 2023, the average export price of Vietnam’s pepper was about 3,667 USD/ton, up 18.1% compared to May 2023, but down 11.3% compared to June 2022.
Vietnam’s average export price of pepper in the first half of the year is estimated at 3,184 USD/ton, down 29.7% over the same period in 2022.
VIETNAM’S PEPPER PRODUCTION HAS INCREASED, IS THE WORLD UNDER PRESSURE?
The global pepper market is forecast to be under pressure.
In fact, in the first 05 months of 2023, China actively bought pepper from Vietnam. According to statistics of the Chinese Customs Administration, in May 2023, China imported 763 tons of pepper, worth 3.32 million USD, up 8.5% in volume and 29% in value compared to April 2023. Compared to May 2022, it was down 19% in volume and 28% in value.
In the first 05 months of the year, China imported over 3,000 tons of pepper, worth 13.14 million USD, down 22.6% in volume and 29.8% in value compared to the same period last year.
In May 2023, China’s average import price of pepper reached 4,355 USD/ ton, up 18.9% compared to April 2023, but down 11.1% compared to May 2022.
Accumulated in the first 05 months of 2023, China’s import price of pepper was at 4,307 USD/ton, down 9.3% compared to the same period last year.
In the first 05 months of 2023, China reduced pepper imports from most major suppliers, except Vietnam. Statistics from the Chinese Customs Administration show that in the first 05 months of 2023, China imported 1,600 tons of pepper from Indonesia, worth 6.65 million USD, down 12.6% in volume and 27.9% in value compared to the same period last year.
Meanwhile, China increased imports of pepper from Vietnam, which was up 3.1% in volume, reaching 1,200 tons. However, in terms of value, it declined by 17.6%, to approximately 4.31 million USD in the first 05 months of 2023.
The market share of Vietnam’s pepper in China’s total imports increased from 29.54% in the first 05 months of 2022 to 39.39% in the first 05 months of 2023.
The Import and Export Department forecast that the global pepper market is under pressure when Vietnam’s output is about to increase while speculators tend to switch to coffee and purchasing power from major markets such as the EU, the United States, and China decreased./.