Weekly Publications

MARKET REPORT

The market was reported rather positive this week with only China origin recorded a deficit. This week US Dollar weakened against most of the local currencies of pepper producing countries which contributed to the increase of the pepper price in most regions.

At the local level, black pepper India was traded 2% higher as compared to the previous week, averaging to USD 4,795 per Mt. Indonesia's black and white pepper experienced the same 1% increase as compared to the previous week. In local currency Indonesia's white pepper recorded a slight increase and by the end of the week it was traded at IDR 50,500 per Kg while Lampung black pepper remained at IDR 30,000 per Kg. Malaysia black and white pepper continued to be traded stable with an average of USD 2,300 per Mt and 3,870 per Mt respectively. Viet Nam black pepper was reported to record a slight 1% increase while its white pepper recorded a high 4% increase when compared to the previous week and was traded at an average of USD 3, 200 per Mt. Sri Lanka black pepper was also traded stable at an average of USD 3, 386 per Mt whilst China white pepper experienced 1% deficit to an average of USD 4,460 per Mt.

In the international market, the positive trend continued with only China reported a deficit. FOB price of Indian black pepper was reported to increase by 2% when compared to the previous week. Lampung black pepper and Muntok white pepper were traded internationally with the same increase of 1% as compared to the previous week and recorded an average of USD 2,580 per Mt and USD 4,150 per Mt respectively. Malaysian black and white pepper FOB prices were reported stable. Viet Nam black pepper 500 g/l and 550 g/l were traded internationally with the same increase of 2% whilst its white pepper was reported to experience a slight 1% increase with an average of USD 3,515 per Mt. China white pepper in the international market was reported to have recorded a 1% deficit as compared to the previous week to an average of USD 4,660 per Mt.

IMPORT OF PEPPER BY CHINA:

China, known for its production of white pepper, mainly cultivates its pepper in the southmost province of China, Hainan. Though considered as one of the pepper producing countries, China imported a significant amount of pepper annually to compensate the consumption of its 1.4 Billion people. Due to high demand of the domestic consumption in comparison with the insufficient domestic production, China has become net importer of pepper, thus, import pepper figures higher than export pepper figures.

In the past three years, pepper import by China had fluctuated quite significantly. The year 2016 saw China importing a total of 4,488 Mt which comprised of 4,021 Mt whole pepper and 467 Mt ground pepper. China spent a total of USD 44.85 Million for pepper import in 2016 which recorded an average price of the total pepper imported by China at USD 9,932 per Mt for whole pepper and USD 10, 518 per Mt for ground pepper.

2017 pepper import by China was reported to decrease by 14% when compared to the previous year. Thus, recording a total of 3,850 Mt which comprised of 3,212 Mt of whole pepper and 638 Mt of ground pepper. Decrease in quantity was followed by an even greater decrease in value, China spent 42% less in acquiring its pepper which recorded a total of USD 25.79 Million. The average price of the total pepper imported by China decreased to USD 6,459 per Mt for whole pepper and USD 7,901 per Mt for ground.

In 2018, China was reported to experience increase in its pepper import. It recorded 53% spike in terms of quantity of pepper imported by China which equals to more than 2,000 Mt increase when compare to 2017. China recorded a 5,872 Mt of total pepper import in which 5,270 Mt of it was whole pepper. In addition, China spent a total of USD 27.47 Million for its pepper import which recorded 7% increase in terms of value as compared to the previous year. China's average price of the total pepper import continued to decrease to USD 4,413 per Mt for whole pepper and USD 7,004 per Mt for ground pepper.

China pepper import in 2018 mainly came from the top pepper producing countries. The top 10 exporters of pepper to China were Malaysia with 2,684 Mt which contributed to 46% of pepper imported by China. The second highest pepper exporter to China was Indonesia with 1,077 Mt of pepper and followed with Viet Nam (830 Mt), Brazil (582 Mt), India (215 Mt), Sri Lanka (158 Mt), Hong Kong (123 Mt), Singapore (41 Mt), Italy (36 Mt), and United States with 34 Mt.