Weekly Publications

MARKET REPORT

Market this week showed mixed response with Sri Lanka recorded the highest increase for its local market price and Viet Nam for its International market price. In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 4,516 per Mt. Indonesia black and white pepper were reported stable and relatively unchanged at an average of USD 1,624 per Mt and USD 3,284 per Mt respectively. Malaysian black and white pepper were also reported stable with an average of USD 2,000 per Mt for black pepper and USD 3,513 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported with a decrease by 1% as compared to the previous week averaging at USD 1,702 per Mt. Viet Nam white pepper was reported to be traded stable with an average of USD 2,626 per Mt. Recording a 7% spike as opposed to the previous week, Sri Lanka black pepper became the only product which recorded an increase in local market and was traded at an average of USD 2,570 per Mt. Whilst, China white pepper was reported to be traded with an average of USD 4,635 per Mt.

In international market, the trend also showed mixed response as only Viet Nam reported an increase. FOB price of India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,797 per Mt. Indonesia black and white pepper was reported steady with at an average of USD 2,021 per Mt for black pepper and USD 3,891 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l and 550 g/l were reported with an increase by 6% respectively as opposed to the previous week averaging at USD 2,345 per Mt and USD 2,410 per Mt respectively. Viet Nam white pepper was also reported with an increase by 4% when compared to the previous week averaging at USD 3,495 per Mt. The increase of Viet Nam prices in international market could be contributed to China buying significant amount of pepper from Viet Nam. As of August 2019, Viet Nam's top country of destination is China. China traded its white pepper in the international level with an average of USD 4,835 per Mt.

EXPORT OF PEPPER BY CHINA

China officially the People's Republic of China (PRC or PR China), is a country in East Asia and the world's most populous country with a population of around 1.44 billion as per October 2019 (source : population.un.org). China is one of the producers of white pepper in the world with cultivation area concentrated in the peninsula of Hainan. As majority of the pepper product in China does not leave the country, China is considered as one of the highest consumers of pepper among pepper producing countries. However, China also exports pepper to various countries in the world.

In 2017, China was reported to have exported a total of 1,311 Mt of pepper from which 43% or 563 Mt of it comprised of whole pepper and 57% or 749 Mt of it ground pepper. China on average exported a total of 109 Mt per month in 2017. The total revenue of China export in 2017 was reported to be as high as USD 14.8 Million, Thus, recording an average price of the total pepper exported by China at USD 9,831 per Mt for whole pepper and USD 12,496 per Mt for ground pepper.

Year 2018 saw an increasing trend in term of quantity of pepper exported by China. China was reported to have exported a total of 2,523 Mt of pepper of which 64% or 1,606 Mt of it comprised of whole pepper and 36% or 916 Mt of it ground pepper. Thus, recording a significant 92% increase in term of quantity as compared to the same period in 2017. The average export of pepper by China was reported to be at 210 Mt per month. In accordance with increasing in terms of quantity, China's revenue from pepper export was reported to have increased by 34% to a total of USD 19.9 Million, recording an 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 or a decrease by 38% and 11% respectively as compared with 2017.

As of July 2019, China was reported to have exported a total of 1,081 Mt which comprised of 692 Mt of whole pepper and 388 Mt of ground pepper. Thus, recording a loss of 23% when compared to the same period in 2018. By the end of July 2019, the total revenue of pepper export by China was reported to have reached USD 7.2 Million, recording a decrease by 41% as compared to the same period in 2018. The average price of the total pepper exported by China as of July 2019 was reported at USD 6,017 per Mt for whole pepper and 7,891 per Mt for ground pepper.
Furthermore, as of July 2019, China's top 5 country destinations for its pepper were reported to be North Korea with 343 Mt (a decrease of 35% as compared with the same period in 2018), Hong Kong with 160 Mt (an increase of 37%), United States of America with 153 Mt (an increase of 19%), Germany with 115 Mt (an increase of 92%) and Thailand with 49 Mt (an increase of 12%).