According to local trading companies, the adjustment of material price reduction this time is because the Exporters have not ordered to supply for the demand of the August contract, while raw materials for processing. The export demand for July contract seems to have been fully provided.
According to market trade, importers seem to want to wait and expect prices to improve somewhat when the two leading producers Indonesia and Malaysia, members of IPC (Pepper Community). International), a new crop offering for sale has now begun to harvest and is expected to ship in early August.
Meanwhile, the US central bank's decision to raise US dollar interest rates to 0.25% and the possibility of further increases also make goods denominated in USD become more expensive and purchasing power. in general temporarily leveling off.
However, spice trade also expects that the purchasing power of traditional consumer markets will soon increase again because the demand of these markets is usually quite stable, especially in Muslim countries as soon as ending Ramadan for Lent this year.
According to white pepper processing factories in Dong Nai and Ba Ria – Vung Tau, the demand for processing white pepper this year is not high. Export traders place orders with relatively stable volumes, while the demand for white pepper from northern traders is almost negligible. It is known that the price of white pepper of Southeast Asian countries decreased slightly by 30-50 USD / ton while China's white pepper decreased by 250-270 USD / ton (FOB – Hainam) compared to the beginning of the month.
The price of Indian black pepper in the domestic market, traded in Kerala state, was reduced by Rs 200 to Rs 32,800 a quintal (US $ 4,846 per tonne) for pepper and at Rs 34,000 a quintal (US $ 5,023). / ton) for semi-processed pepper but the supply is also quite limited, while high-quality pepper decreased Rs 500 to Rs 37,500 / quintal (equivalent to USD 5,540 / ton).
Vietnam's export price of grade 500 Gr / L – FAQ at US $ 2,700 / ton and grade 550 Gr / L – FAQ at US $ 3,000 / ton, (FOB – HCM), the price is relatively stable.
Last week's IPC trade report showed that the market was generally quiet. Pepper prices in most countries decreased slightly, with India and Sri Lanka falling sharply as Malaysia, Sri Lanka were harvesting new crops and Indonesia followed.
* According to a report of the General Department of Vietnam Customs, in May 2018, exports reached 23,103 tons of pepper of all kinds, with a turnover of $ 75.17 million, down 14.0% in volume and down 12.2% in price. compared to the previous month, bringing the export volume of pepper in the first 5 months to 109,907 tons, up 7.2% in volume but down 36.6% in value over the same period last year. The average export price in the period reached 3,254 USD / ton, up 2.1% compared to the average export price of the previous month.
According to Young Intellectuals
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