Weekly Publications

MARKET REPORT

Market this week showed a mixed response. In local market, Malabar black pepper was reported stable with a marginal increase at an average of USD 4,383 per Mt. Indonesia black pepper was reported with an increase of 4% as compared to the previous week averaging at USD 2,039 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit when compared to the previous week averaging at USD 3,636 per Mt. The decrease of Indonesian white pepper could be contributed to the ample supply in local market. Malaysia black and white pepper were reported with 3% and 2% deficit respectively as opposed to the previous week averaging at USD 2,180 per Mt for black pepper and USD 3,626 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 2% and 4% respectively as opposed to the previous week to an average of USD 2,131 per Mt for black pepper and USD 2,958 per Mt for white pepper. Sri Lanka black pepper was reported with 2% deficit as compared to the previous week and was traded at an average of USD 2,996 per Mt. China white pepper was reported with significant increase of 8% when compared to the previous week and was traded at an average of USD 4,513 per Mt Locally.

International market also showed a mixed response. India black pepper was reported stable with a marginal increase at an average of USD 4,655 per Mt. Indonesia black pepper was reported with an increase of 4% as compared to the previous week at an average of USD 2,488 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit as compared to the previous week averaging at USD 4,276 per Mt. Malaysia black and white pepper were reported with 2% and 1% deficit respectively when compared to the previous week at an average of USD 3,725 per Mt for black pepper and USD 4,940 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. China white pepper was reported with an increase of 7% as opposed to the previous week and was traded at an average of USD 4,713 per Mt internationally.

EXPORT OF PEPPER BY CHINA

China, officially the People's Republic of China (PRC) is a country in East Asia. China is known as white pepper producing country which mostly produced in Hainan province, hence, known as Hainan white pepper.

Furthermore, China is reported to actively export pepper to various countries which in the last three years showed an increasing trend.

In 2018, China was reported to have exported a total of 2,523 Mt of pepper which 64% or 1,606 Mt of it comprised of whole pepper and 36% or 916 Mt of it ground pepper. China on average exported a total of 210 Mt per month in 2018 which peaked in August with 322 Mt. There was an increase in export of pepper in August due to harvest came in full swing at July in China. The total revenue of China's export of pepper in 2018 was reported to be as high as USD 19.9 Million. Thus, recording the average price of the total pepper exported by China at USD 6,046 per Mt for whole pepper and USD 11,158 per Mt for ground pepper.

Year 2019 saw an increase in term of quantity of pepper exported by China. China was reported to have exported a total of 2,684 Mt of which 58% or 1,544 Mt of it comprised of whole pepper and 42% or 1,140 Mt of it ground pepper, recording an increase of 6% when compared to 2018. The average export of pepper by China in 2019 was reported to be 224 Mt per month which also peaked in August with 526 Mt. Although increasing in term of quantity, China's revenue from pepper export was reported with a decrease of 25% as compared to the previous year to a total of USD 14.9 Million. Thus, recording an average price of the total pepper exported by China at USD 5,335 per Mt for whole pepper and USD 5,920 per Mt for ground pepper or a decrease of 12% and 47% respectively as compared to 2018.

In the first 2 months of 2020, Business in China was reported to be inactive due to the global pandemic that emerged at the end of 2019. As of July 2020, China was reported to have exported a total of 1,207 Mt which 43% or 520 Mt of it comprised of whole pepper and 57% or 687 Mt of it ground pepper. Thus, recording an increase of 12% when compared to the same period in 2019. As of July 2020, the total revenue of pepper export by China was reported to have reached USD 6.4 Million, recording a decrease of 11% as compared to the same period in 2019. The average price of the total pepper exported by China as of July 2020 was reported to be USD 6,052 per Mt for whole pepper and USD 4,838 per Mt for ground pepper.

Pepper from China is widely traded in Asia, America and European countries. As of July 2020, China's top 5 country destinations for its pepper were reported to be Romania with 336 Mt (2019 n.a), Hong Kong with 170 Mt (an increase of 6% as compared to the same period in 2019), Germany with 150 Mt (an increase of 31%), United States of America with 113 Mt (a decrease of 26%) and Taiwan with 85 Mt (an increase of 77 Mt). The decrease of China's pepper export to United States of America was the result of United States of America imported pepper from other producing country such as Brazil (an increase of 35% or 2,441 Mt as compared to the same period in 2019) and Indonesia (an increase of 22% or 660 Mt).