Weekly Publications

MARKET REPORT

Markets in China and in Viet Nam were still reported to be inactive due to Chinese New Year or Tet Holiday celebration. Markets in other origins at the end of January were reported relatively stable with India and Sri Lanka origins recorded a deficit. In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 4,429 per Mt. Indonesia black pepper and white pepper were reported stable and unchanged with an average of USD 1,796 per Mt for black pepper and USD 3,152 per Mt for white pepper. Malaysian black and white pepper were also reported stable at an average of USD 1,866 per Mt for black pepper and USD 3,303 per Mt for white pepper. By the end of January, Sri Lanka continued to be traded negatively as it kept dropping and recorded an 18% deficit as compared to the average in the first week of January which was reported at USD 3,607 per Mt. This week, Sri Lanka black pepper was reported to record a 4% deficit as compared to the previous week and was traded below USD 3,000 per Mt at an average of USD 2,947 per Mt.

International market was also reported rather stable. FOB price of India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,709 per Mt. Indonesia black and white pepper were reported steady at an average of USD 2,224 per Mt for black pepper and USD 3,753 per Mt for white pepper. Furthermore, Malaysia black and white pepper continued to be traded stable and unchanged.

IMPORT OF PEPPER BY SOUTH KOREA

South Korea, officially the Republic of Korea is a country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea. South Korea actively imports pepper from various pepper producing countries for its domestic consumption or for re-export purpose.

In 2017, South Korea was reported to have imported a total of 6,153 Mt of pepper which 92% or 5,658 Mt of it comprised of whole pepper while 8% or 494 Mt of it was ground pepper. The average import by South Korea in 2017 was reported to be 513 Mt per month with the highest quantity recorded in May with 1,047 Mt. The total expenditure of pepper import by South Korea was reported to be as high as USD 39.5 Million, recording an average price of the total pepper imported by South Korea at USD 6,353 per Mt for whole pepper and USD 7,254 Per Mt for ground pepper.

Year 2018 saw a decreasing trend in term of quantity of pepper imported by South Korea. South Korea was reported to have imported a total of 5,607 Mt which comprised of 91% or 5,085 Mt of whole pepper and 9% or 522 Mt of ground pepper, recording a decrease of 9% as compared to the same period in 2017. On average South Korea was reported to have imported 467 Mt per month which peaked in June with 761 Mt. In accordance with decreasing in term of quantity, South Korea's expenditure for pepper import was reported to have declined by 42% to a total of USD 23.0 Million, recording an average price of the total pepper imported by South Korea at USD 4,009 per Mt for whole pepper and USD 5,179 per Mt for ground pepper or a decrease by 37% and 29% respectively as compared with 2017.

Pepper import by South Korea in 2019 was reported with an increase by 17% as compared to 2018, totaling at 6,567 Mt which comprised of 92% or 6,053 Mt of whole pepper and 8% or 514 Mt of ground pepper. The average import by South Korea in 2019 was reported to be 547 Mt per month with the highest quantity recorded in April with 906 Mt. Although increasing in term of quantity, the total expenditure of pepper import by South Korea in 2019 was reported to decline by 9% as compared to the previous year, totaling at USD 21.0 Million. Thus, recording an average price of the total pepper imported by South Korea at USD 3,110 per Mt for whole pepper and USD 4,384 per Mt for ground pepper or a decrease by 22% and 15% respectively as compared with 2018.

The top five countries of origins of South Korea's pepper in 2019 were reported to be Viet Nam with 5,186 Mt (an increase of 8% as compared with 2018), Malaysia with 671 Mt (an increase of 2%), Brazil with 458 Mt (an increase of 455 Mt), Indonesia with 170 Mt (an increase of 135 Mt) and India with 43 Mt (a decrease of 45%). The decrease of South Korea import from India could be contributed that South Korea started to shift import to other origins country such as Brazil (an increase by 455 Mt as compared to 2018)