Weekly Publications

MARKET REPORT

This week market showed a rather mixed response with only Sri Lanka and China origins recorded a slight increase. At the local level black pepper prices took a rather negative movement. India black pepper were reported to experience a deficit of 3% as compared to the previous week and was traded at an average of US$ 4,745 per MT. This deficit could be contributed to the lowering of the price of black pepper in local currency as well as the weakening of the INR towards US Dollar. Indonesia was reported to have recorded a 1% deficit in its Lampung black pepper prices whilst its Muntok was traded stable at an average of US$ 3,621 per MT. Malaysia origin was reported to trade its peppers relatively stable for both black and white pepper and averaging at US$ 2,297 per MT and US$ 3,864 per MT respectively. Viet Nam black pepper was traded 3% lower than the previous week at an average of US$ 1,873 per MT. However, Viet Nam white pepper was traded relatively stable as compared to the previous week at an average of US$ 3,079. Both Sri Lankan black pepper and Chinese white pepper were traded higher by 2% and 1% respectively as compared to the previous week.

FOB Prices of most origins were also reported to have recorded deficit with only China origin to have recorded a slight increase. Following the trend in local level, FOB price of India black pepper recorded a deficit of 3% as compared to the previous week at an average of US$ 5,026 per MT. FOB Price of Indonesian black pepper recorded a slight deficit of 1% whilst Muntok white pepper were reported stable at an average of US$ 4,269 per MT. Malaysian black and white pepper were also traded relatively stable as compared to the previous week. Viet Nam origins continues its downward trend in the FOB prices with black pepper 500 g/l, 550 g/l and white pepper all recorded a deficit of 4% when compared to the previous week. China white pepper's FOB prices became the only product to have recorded a slight increase of 1% at an average of US$ 5,095 per MT.

Due to recent arrivals of cheaper materials US spot prices of black pepper were reported to been pushed lower this week.

IMPORT OF PEPPER BY JAPAN:

Japan is one of Asian countries that imports pepper in high quantity. Most of the pepper imported into Japan is used for domestic consumption, while the rest (in very small amounts) is used for business purposes such as re-export business. In 2016, Japan imported 8,741 MT of pepper consisting of 5,131 MT of whole pepper and 3,610 MT ground pepper. In that period the import value of pepper by Japan was recorded at US$ 105 million.

In 2017, Japan imported 6% lower than the previous year. The total imports of pepper by Japan in 2017 were recorded at 8,193 MT consisting of 4,670 MT whole pepper and 3,524 MT ground pepper. The value of pepper imports by Japan in 2017 was recorded at US$ 73.6 million, recording a decline of 31% compared to the pepper imports value in 2016. The decline in the imports value occurred due to declining of pepper prices. Furthermore, in 2018 Japan imported 9,485 MT of pepper, recording a 16% increase in quantity compared to 2017. Imports of pepper by Japan in 2018 consisted of 5,428 MT of whole pepper and 4,057 ground pepper. The total import value for the period was US$ 55.2 million. In 2018, despite experienced an increase in quantity, imports by Japan continued to decline in value. In 2018 Japan's import value was recorded to have declined by 25% compared to 2017 values.

In 2018, 50% of the whole pepper imported by Japan comes from Malaysia with a quantity of 2709 MT. Japan also imports pepper from other pepper producing countries such as Indonesia with 28% shares (1,533 MT), Viet Nam with 11% shares (599 MT), India with 9% shares (469 MT), and other countries. As for ground pepper, 41% or 1,681 MT of ground pepper imported into Japan shipped from Viet Nam. Furthermore, Japan also imported ground pepper from Indonesia with 38% shares (1,549 MT), Malaysia with 19% shares (764 MT), and other countries.?