Pepper prices are increasing rapidly towards the 175,000 VND/kg mark?

Pepper price forecast on June 17, 2024 will increase sharply towards the mark of 175,000 VND/kg. This week, the market witnessed 2 strong waves of domestic pepper prices, this is an adjustment step after the recent period of overheating.

In the past month, pepper prices have increased rapidly, from 120,000 VND/kg in mid-May to 127,000 - 129,000 VND/kg in late May and even increased to 185,000 VND/kg in some localities on June 12. With this increase, it is predicted that pepper prices will exceed 200,000 VND/kg in the second half of this year.

Pepper price forecast on June 17, 2024: Pepper price increases sharply towards 175,000 VND/kg

During the up cycle there will be adjustments due to speculation, however the shortage of supply will cause pepper prices to continue to increase in the long term.

The scarcity of supply coupled with increased market demand has pushed pepper prices up again. Some pepper dealers and growers believe that China's re-emergence in the market is also a strong factor pushing up prices.

Domestic pepper prices today in the Central Highlands and Southeast regions fluctuated up and down by 1,000 VND/kg in some localities, trading around 156,000 VND/kg, the highest purchase price in Dak Nong province was 158,000 VND/kg.

Accordingly, the price of Dak Lak pepper is purchased at 157,000 VND/kg, unchanged from yesterday. The price of Chu Se pepper (Gia Lai) is currently at 155,000 VND/kg, unchanged from yesterday. The price of Dak Nong pepper today is recorded at 158,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday.

In the Central Highlands and Southeast regions, prices fluctuated up and down by 1,000 VND/kg in some localities, trading around 156,000 VND/kg, the highest purchase price in Dak Nong province was 158,000 VND/kg.

Domestic pepper price on June 16 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease from yesterday
Chu Se (Gia Lai)	VND/kg	155,000	0
­­ Dak Lak	VND/kg	157.0000	0
Dak Nong	VND/kg	158,000	+ 1,000
Binh Phuoc	VND/kg	155,000	- 1,000
Ba Ria - Vung Tau	VND/kg	156,000	-1,000

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,418 USD/ton, down 0.53%; the price of Brazilian black pepper ASTA 570 at 7,900 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,377 USD/ton, down 0.54%; Malaysian ASTA white pepper price remains at 7,300 USD/ton.

The price of Vietnamese black pepper increased sharply across the board, reaching 7,800 USD/ton (up 6.84%); 550 g/l at 8,000 USD/ton (up 2.56%); white pepper at 12,000 USD/ton (up 12.14%).

IPC commented that this week's pepper market continues to show positive prospects, as no market recorded a decrease.

In the coming time, in addition to the tension in supply and demand, the price of goods in general and pepper in particular is being affected by skyrocketing sea freight rates.

Shipping giant Maersk (Denmark) said that container shipping costs have increased "almost vertically" over the past month. Specifically, in the week ending June 6, Drewry's container freight index increased 12% to $ 4,716 per FEU (40-foot container), up 181% compared to the same period last year and 232% higher than the average level in 2019.

Freight charges are factored into the cost of goods, causing them to increase in price, including coffee and pepper exported from Vietnam.

In the pepper and spice industry, the Vietnam Pepper and Spice Association reported that pepper exporting enterprises are facing double difficulties when pepper prices increase, businesses cannot buy goods, along with that, transportation costs increase. The reason may be that China collects empty containers for export.

The International Pepper Community (IPC) commented that the pepper market this week continues to show positive prospects, as no market recorded a decrease. In the coming time, in addition to the tension in supply and demand, the price of goods in general, and pepper in particular, is being affected by skyrocketing sea freight rates. The giant shipping group Maersk (Denmark) said that container shipping costs increased ''almost vertically'' in the past month.

Specifically, in the week ending June 6, Drewry's container freight rate index increased by 12% to $4,716 per FEU (40ft container), up 181% year-on-year and 232% higher than the 2019 average. Freight rates are embedded in the cost of goods, causing prices to rise, including coffee and pepper exported from Vietnam.

In the pepper and spice industry, the Vietnam Pepper and Spice Association reported that pepper exporting enterprises are facing double difficulties when pepper prices increase, businesses cannot buy goods, along with that, transportation costs increase. The reason may be that China collects empty containers for export.

* Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-1762024-gia-tieu-tang-nong-huong-den-moc-175000-dongkg-326504.html