Slight increase will reach 160,000 VND/kg?

Pepper price forecast on July 2, 2024 continues to increase. This month, global pepper supply still depends on the amount of goods from Vietnam while the harvest in other countries has not yet begun. This helps Vietnamese pepper prices maintain a good increase every month of the second quarter of 2024.

In addition, the tension in sea freight rates continues to be embedded in the prices of goods in general, including pepper. In addition, speculative activities have pushed prices up recently.

Exporters commented that the situation of shipping to Vietnam's key export markets is very tense. The most serious is the route to Europe, where freight is both expensive and there is no space. Currently, freight rates are 60%-70% higher than at the beginning of the year.

Pepper price forecast on July 2, 2024: Slight increase, reaching 160,000 VND/kg

Many containers are stuck at the port and cannot move. This congestion is partly due to ships heading to China to concentrate on exporting goods to the US before August 1, to avoid being imposed anti-dumping duties by the US. This has led to congestion at Singapore and Chinese ports, causing many places to lack ships, pushing up freight rates. Conflicts in the Red Sea are also a cause.

High freight rates have pushed up Vietnam’s pepper export prices this month. Although the export volume has decreased compared to the same period last year, the value has increased sharply, making it likely that the pepper industry will achieve its billion-dollar export target this year.

In the domestic market, pepper prices today, July 1, 2024, in the Southeast region simultaneously stagnated in some localities, trading around 154,800 VND/kg, the highest purchase price in Dak Nong province was 157,000 VND/kg.

Accordingly, Dak Lak pepper price is purchased at 155,000 VND/kg, unchanged from yesterday's price. Chu Se pepper price (Gia Lai) is currently at 153,000 VND/kg, unchanged from yesterday's price. Dak Nong pepper price today is still recorded at 157,000 VND/kg.

In the Southeast region, pepper prices today are the same. Specifically, in Ba Ria - Vung Tau, pepper prices remain stable at 154,000 VND/kg; in Binh Phuoc, pepper prices remain at 155,000 VND/kg.

In the world market, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,106 USD/ton; the price of Brazilian black pepper ASTA 570 at 7,300 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 7,500 USD/ton.

Muntok white pepper price is 9,048 USD/ton; Malaysian ASTA white pepper price is at 8,800 USD/ton.

Vietnam's black pepper price is trading at 6,500 USD/ton for 500 g/l; 550 g/l at 7,000 USD/ton; white pepper price at 9,500 USD/ton.

Domestic pepper price on July 1 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	153,000	–
­­ Dak Lak	VND/kg	155,000	–
Dak Nong	VND/kg	157,000	–
Binh Phuoc	VND/kg	155,000	–
Ba Ria - Vung Tau	VND/kg	154,000	–

According to some business representatives and industry experts, the above situation is due to the continuous increase in pepper prices in recent times, causing a number of businesses exporting this product to temporarily stop buying. This is a move to rebalance the pepper market which is currently highly "speculative".

Currently, the supply of goods to the market is "drop by drop". All market participants such as pepper growers, traders, purchasing agents, export enterprises, etc. know that this year's output is low, while demand has recovered well, leaving very little stock. Therefore, pepper growers and purchasing agents tend to hoard goods in order to wait for prices to rise even higher. In particular, some traders have collected goods and created an artificial shortage in some areas to push prices up rapidly.

This situation leads to difficulties for export enterprises, they cannot buy goods to complete previously signed contracts, while market prices are pushed up every day, causing the risk of great losses.

Notably, Mr. Hoang Phuoc Binh - Vice President of Chu Se Pepper Association (Gia Lai) said that currently, the transaction price of Vietnamese pepper in general and the price of other types of pepper in the world are higher than the domestic price level, so many agents have a great motivation to hoard goods. Meanwhile, there is currently no business buying thousands of tons of pepper at this time, making the demand in the market "fragile".

Some businesses have turned to other countries such as Brazil to find enough supplies to pay for signed contracts, but the record high USD and tensions in sea transport have caused significant difficulties for pepper exporting businesses in recent times.

According to the Vietnam Pepper and Spice Association (VPSA), in the short term, pepper prices may have some downward adjustments, but they will not be too deep, it is unlikely to return to the low price level as before and the market has formed a new price level.

* Information for reference only. Prices may vary depending on time and location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-272024-tang-nhe-co-cham-moc-160000-dongkg-329409.html