On May 24, the price of black pepper in raw material areas in the Southeast and Central Highlands provinces increased simultaneously thanks to the new purchasing power of export traders. Specifically, the price of black pepper in buckets in Chau Duc and Xuyen Moc of Ba Ria – Vung Tau increased by 2,000 VND to 61,000 VND/kg, the remaining localities fluctuated in the range of 58,000 – 60,000 VND/kg.
According to a local trader in Dong Nai market, the buying force that appeared this time was just buying to supplement the exporter’s reserve inventory after the delivery of goods to the ship for traditional importers according to the regulations. signed contract. Meanwhile, the market has not recorded any new sudden buying power. In particular, the buying demand of white pepper processing factories has not yet reappeared because there are no orders from exporters.
It is expected that the number of traditional customers from Hainan – China who often order white pepper in a fairly significant volume is likely to return around the end of this month or early next month and then the price of black pepper will be better. especially high-quality, high-capacity goods.
Anh Chau Hue, a trader who often supplies raw materials to white pepper processing factories in Xuan Loc – Dong Nai, said that in order to get high-volume goods, fully supplied according to the needs of processing factories. For white pepper, traders have to search in advance in the garden for quality consignments and buy at prices higher than the market price from time to time. Especially, when customers place an order with a large volume, in order to attract demand-driven selling, the price of black pepper in a high-capacity bucket is usually purchased with a bonus price of 2,000 – 3,000 VND/kg after the price.
Trade in India said that the Government of this country has just allowed the duty-free import of 2,500 tons of black pepper under the FTA (Free Trade Agreement) with a minimum price of Rs 500/kg (about 7.45-7.50 USD/kg) ) from Indonesia and Sri Lanka for processing, added value and re-export. However, Indian spice exporters believe that this low allowable limit will not contribute to improving the price of black pepper in the domestic Indian market but will also encourage black market creation and smuggling. and most of all will limit their business. This will lead to the possibility that many Indian spice exporters will set up bases to add value added in Vietnam and Indonesia, where the supply has always proved to be abundant.
According to the trade report of the World Pepper Association (IPC) last week, the price of black pepper in India and Sri Lanka decreased, while the black pepper of Vietnam and Indonesia remained stable while export prices remained low, so the quantity goods delivered to export ports showed signs of slowing down. Brazilian pepper grade B-Asta was offered at $3,000/ton, down $150-200/ton from a week earlier. The price of Vietnamese black pepper 500 Gr/l offered at US$2,700/ton and the price of 550 Gr/l offered at US$3,000/ton (FOB-HCM), remained unchanged.
According to a report by the General Department of Vietnam Customs, exports in the first half of May 2018 reached 10,811 tons of pepper of all kinds, with a turnover of 35.16 million USD, up 11.57% in volume but down 34 %. 94 percent in value over the same period last year. The average export price of pepper in the period reached 3,252 USD/ton, up 2.04% compared to the average export price in April 2018.
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