Vietnam pepper exporters compelled to cut prices
The Vietnamese pepper market showed price decreases of around USD100 per tonne on August 15 from its closing levels of the previous week, Amberwood Trading noted in a report issued on August 19.
“Vietnamese traders, sellers, and exporters believe that currently Indonesia pepper is challenging Vietnamese pepper a lot,” the company stated.
Amberwood Trading feels that the local market might be starting to react as it is arriving at the last quarter of 2016 (when even more pepper will be arriving from Brazil) and everybody wants to be on the safe side, financially.
“The situation might disappoint people who has been expecting similar top levels as 2015. Trades are now in the short term, hit and run mostly. We might see a further decline consequently during this week,” the report added. “However, Chinese factors are always unpredictable which could be giving very interesting surprises to the Vietnamese market.”
Amberwood Trading gave the following price indications on Vietnamese pepper:-
- BP 500 faq USD7,500-7,600
- BP 550 faq USD7,900-8,000
- BP 500 cleaned USD8,100-8,200
- BP 550 cleaned USD8,200-8,300
- BP 570 ASTA USD8,400 -8,500
- WP DW USD11,500-11,600
All these prices are on the basis of fob Ho Chi Minh City.
According to the Vietnam Pepper Association, until the end of July 2016, Vietnam exported 121,676 tonnes of all pepper types, including 107,876 tonnes of black pepper and 13,797 tonnes of white pepper. Overall volume was up 24.22% or 23,725 tonnes.
Total export turnover reached USD987.61 million, an increase of 7.64% or USD70.13 mln.
Of this value total black pepper reached USD831.26 mln, with white pepper accounting for the balance of USD156.35 mln.
The average export price of black pepper in the first seven months reached USD7,706/tonne (down USD1,199 from the same period of 2015), while that of white pepper was at USD11,332/tonne (-USD1,411/tonne from a year ago).
