Market reacts positively, the reason for the decrease in Vietnam's pepper exports to China

Pepper price today February 5, 2025 in the domestic market increased sharply in key localities, trading from 148,000 - 150,000 VND/kg.

Pepper price today February 5, 2025: Market reacts positively, the reason for the decrease in Vietnam's pepper exports to China. (Source: Times of India)

Pepper price today February 5, 2025 in the domestic market increased sharply in key localities, trading from 148,000 - 150,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 149,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (148,500 VND/kg); Dak Lak (150,000 VND/kg); Dak Nong (150,000 VND/kg); Ba Ria - Vung Tau (149,000 VND/kg) and Binh Phuoc (149,000 VND/kg).

Thus, after a series of sideways days, pepper prices today increased sharply in key growing areas, increasing by 1,500 - 2,000 VND/kg. The highest pepper price reached 150,000 VND/kg.

According to data from the Vietnam Pepper and Spices Association (VPSA), in contrast to the strong increasing trend from the US and the European Union (EU), Vietnam's pepper exports to the Chinese market in 2024 fell to the lowest level in the past 9 years, reaching only 10,549 tons, worth 32.15 million USD, down 82.4% in volume and 76.6% in value compared to 2023.

Pepper exports to China are even lower than in 2022, when the country was closed due to the COVID-19 pandemic.

This result caused China to drop from Vietnam's largest pepper consumer in 2023 to 5th place in 2024. At the same time, its market share decreased to 4.2% compared to 22.6% of the previous year.

VPSA said that Vietnam's pepper exports to China decreased due to the impact of many factors.

One of the main reasons is the economic downturn of the Northeast Asian country in the first months of the year, leading to people tightening spending (travel, eating out), leading to decreased demand.

In addition, in 2023, China imported a large amount of pepper. In 2024, due to the sharp increase in prices, there was a time when domestic prices in China were cheaper than prices in Vietnam, so inventory was brought out for consumption.

China's tightening of cross-border trade policies by Chinese Customs has also caused some Chinese importers to be arrested or not dare to buy goods. This has also led to a 25.2% decrease in the amount of pepper exported through border trade from 94.2% in 2023 to 69% in 2024.

Besides, China has increased purchases from other countries such as Indonesia due to more competitive prices compared to Vietnam.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,219 USD/ton, up 1.07%; the price of Brazilian black pepper ASTA 570 at 6,150 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 9,000 USD/ton.

Muntok white pepper price is 9,694 USD/ton, up 0.55%; Malaysian ASTA white pepper price is at 11,600 USD/ton.

Vietnamese black pepper price is traded at 6,350 USD/ton for 500 g/l; 550 g/l at 6,650 USD/ton; white pepper price at 9,550 USD/ton. IPC continues to increase Indonesian pepper price.

IPC commented that the market in the last week of January showed a positive reaction when no producing country recorded a price decrease.

Both domestic and export pepper prices in India have continued to increase since last week.

Indonesian black pepper prices have remained stable since last week, while white pepper prices have continued to rise over the past two weeks.

Malaysian domestic pepper prices recorded an increase last week. Meanwhile, the country's pepper export prices remained stable and unchanged.

Sri Lankan domestic pepper prices have recorded an increase over the past three weeks.

Prices of Brazilian black pepper and Cambodian black pepper were stable last week. The Chinese market was closed for the Lunar New Year holiday last week.

Pepper price today February 5, 2025 in the domestic market increased sharply in key localities, trading from 148,000 - 150,000 VND/kg.

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