Pepper price today July 5, 2023, why did domestic pepper prices drop sharply, why did China reduce orders?

Pepper prices today in the domestic market slightly decreased in some key localities, trading from 66,500 - 69,500 VND/kg.

Pepper price today July 5, 2023, why did domestic pepper prices drop sharply, why did China reduce orders? (Source: arabstuffs.com)

Pepper prices today in the domestic market slightly decreased in some key localities, trading from 66,500 - 69,500 VND/kg.

Specifically, today's pepper price in Gia Lai is the lowest in the market at 66,500 VND/kg.

Pepper prices today in Dong Nai (67,000 VND/kg); Dak Nong, Dak Lak (67,500 VND/kg); Binh Phuoc (68,500 VND/kg) and Ba Ria - Vung Tau provinces are at the highest level of 69,500 VND/kg.

Exactly 2 months ago, on May 4, domestic pepper prices set a new milestone when they reached 70,000 VND/kg in Ba Ria. From that milestone, the market continuously had price increases up to nearly 80,000 VND/kg.

The increase only lasted in May 2023. In June, the purchasing power from the Chinese market decreased sharply, causing the market to plummet. Currently, pepper prices have returned to the same level as 2 months ago.

According to the assessment, the market in the first half of the third quarter of 2023 is not bright. Weak purchasing power from Europe and the US maintained for a long time, along with declining Chinese imports in the context of interest rates that may continue to rise, making the market gloomy.

Meanwhile, the Vietnam Pepper and Spices Association (VPSA) said that the sharp increase in exports to China in March and April was one of the main reasons for the increase in pepper prices.

However, this price has caused a cautious reaction, reducing orders from importers from Europe and the US as they believe the price is not competitive and expect supply from Indonesia in July to help cool the market.

In addition, the amount of inventory from previous years also helps buyers from the EU and the US hesitate to enter the market.

According to the news of the Import-Export Department ( Ministry of Industry and Trade ), in June 2023, black pepper prices in the domestic market decreased sharply due to reduced demand from China.

Information from VPSA shows that continuous purchases since the beginning of the year (reaching nearly 50,000 tons) show that China may have purchased almost enough reserves so they do not need to buy more.

In addition, the EU's decision not to import agricultural products grown on deforested land 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, the price of black pepper 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.

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