After continuously collecting Vietnamese pepper, Chinese businessmen suddenly reduced purchasing, causing pepper prices in the domestic market in June 2023 to drop sharply.
Pepper prices decreased due to reduced Chinese purchases
According to the bulletin of the Import-Export Department (Ministry of Industry and Trade), in June 2023, the price of black pepper in the domestic market decreased sharply due to reduced demand from China.
Information from the Vietnam Pepper Association shows that the continuous purchasing from the beginning of the year until now (reaching nearly 50,000 tons) shows that China may have nearly enough reserves of goods so they do not need to buy more. enter.
In addition, the EU’s decision not to import agricultural products grown on land from deforestation also negatively impacted pepper prices.
Accordingly, in June 2023, the price of black pepper in the domestic market decreased sharply compared to the end of May 2023. In Dong Nai and Ba Ria – Vung Tau provinces, black pepper prices decreased by 2,500 VND/kg, down to 69,000 – 71,500 VND/kg; In Gia Lai and Binh Phuoc provinces, the price decreased by 3,000 VND/kg, down to 68,500 – 70,500 VND/kg; In Dak Lak and Dak Nong provinces, the price decreased by 3,500 VND/kg, down to 69,500 VND/kg.
White pepper price 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 from the General Department of Customs show that in June 2023, Vietnam’s pepper exports reached 25,000 tons, worth 92 million USD, down 13.6% in volume, but up 2.0% in value compared to In May 2023, compared to June 2022, it increased by 3.4% in volume, but decreased by 8.2% in value.
In the first 6 months of 2023, Vietnam’s pepper exports are estimated to reach 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, Vietnam’s average export price of pepper is estimated to reach 3,667 USD/ton, up 18.1% compared to May 2023, but down 11.3% compared to June 2022.
In the first 6 months of 2023, the average export price of Vietnam’s pepper is estimated to reach 3,184 USD/ton, down 29.7% over the same period in 2022.
Vietnam’s pepper output increases, is the world under pressure?
In fact, in the first 5 months of 2023, China actively purchased pepper from Vietnam. According to statistics from the Chinese Customs Authority, in May 2023, China imported 763 tons of pepper, worth 3.32 million USD, an increase of 8.5% in volume and 29% in value compared to for April 2023, compared to May 2022, a decrease of 19% in volume and a decrease of 28% in value.
In the first 5 months of 2023, 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.
Cumulatively in the first 5 months of 2023, China’s pepper import price is at 4,307 USD/ton, down 9.3% over the same period last year.
In the first 5 months of 2023, China reduced pepper imports from most major suppliers, except Vietnam. Statistics from the Chinese Customs Authority show that, in the first 5 months of 2023, China imported pepper from Indonesia reaching 1,600 tons, worth 6.65 million USD, down 12.6% in volume and down 27%. .9% in value compared to the same period last year.
Meanwhile, China increased its imports of pepper from Vietnam, increasing by 3.1% in volume, reaching 1,200 tons, but by value decreased by 17.6%, to approximately 4.31 million USD in the first 5 months. 2023.
Vietnam’s pepper market share in China’s total imports increased from 29.54% in the first 5 months of 2022 to 39.39% in the first 5 months of 2023.
The Import-Export Department forecasts that the global pepper market will be under pressure when Vietnam’s output is expected to increase, while speculators tend to turn to coffee and purchasing power from large markets such as the EU and the United States. and China decreased.
