Pepper price today June 10, 2023, paradox of selling more goods but earning less money, need to monitor the pull-push of supply and demand

Pepper prices today in the domestic market continued to decrease in some key localities, trading from 70,000 - 73,000 VND/kg.

Pepper price today June 10, 2023, paradox of selling more goods but earning less money, need to monitor the pull-push of supply and demand. (Source: Haprosimex)

Pepper prices today in the domestic market continued to decrease in some key localities, trading from 70,000 - 73,000 VND/kg.

Specifically, pepper prices today in Gia Lai and Dong Nai are the lowest in the market at 70,000 VND/kg.

Pepper prices today in Dak Nong, Dak Lak provinces (71,000 VND/kg); Binh Phuoc (72,500 VND/kg) and Ba Ria - Vung Tau are at the highest level of 72,500 VND/kg.

In the international market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Vietnamese black pepper at 3,500 USD/ton for 500 g/l, 3,600 USD/ton for 550 g/l; the price of white pepper at 5,000 USD/ton.

Thus, the domestic pepper market recorded the fourth consecutive day of price decline this week.

According to the Vietnam Pepper and Spice Association (VPSA), in May 2023, Vietnam exported 28,759 tons of pepper of all kinds, of which black pepper reached 25,850 tons and white pepper reached 2,909 tons.

Total export turnover reached 89.6 million USD, black pepper reached 76.8 million USD, white pepper reached 12.8 million USD, compared to the previous month, export volume increased by 9.4%, turnover increased by 7.5%.

The average export price of black pepper in May reached 3,540 USD/ton, white pepper reached 5,024 USD/ton, up 85 USD and 154 USD respectively compared to April 2023.

The group of enterprises in the Export Association increased by 11.2%; enterprises outside the Export Association increased by 7.2%.

Cumulatively from January 1 to May 31, 2023, Vietnam exported 131,777 tons of pepper of all kinds, of which black pepper reached 119,832 tons and white pepper reached 11,945 tons. Total export turnover reached 408.9 million USD, black pepper reached 354.1 million USD, white pepper reached 54.7 million USD.

Compared to the same period last year, export volume increased by 30.0% equivalent to 30,438 tons, however, export turnover decreased by 12.7%, equivalent to a decrease of 59.5 million USD. The average export price of black pepper in 5 months reached 3,443 USD/ton, white pepper reached 4,955 USD/ton, down 21.7% and 18.4% respectively compared to the same period.

According to forecasts, pepper prices in the coming time will remain high with support from purchasing demand from the Chinese market.

Also according to VPSA, to assess whether prices will continue to increase or not, it is necessary to monitor the pull of supply and demand in the coming time.

Psychologically, everyone wants pepper prices to increase. People want prices to go up to support costs, and businesses also want prices to go up to share profits with people.

At the same time, the State itself also needs good prices to increase export turnover. However, VPSA still needs to assess whether the pull of supply and the push of demand can do that or not.

Source