Weekly Publications

MARKET REPORT

Market this week showed mixed response with a rather positive outlook as only Indonesia's Muntok white pepper was reported with a decrease. In local market, Malabar black pepper was reported stable at an average of USD 4,043 per Mt. Indonesia black pepper was reported with an increase of 1% as opposed to the previous week averaging at USD 1,728 per Mt whilst Indonesia white pepper was reported with 1% deficit as compared to the previous week at an average of USD 2,913 per Mt. Malaysia's black and white peppers were reported stable and unchanged. Furthermore, Viet Nam black and white pepper were reported with significant increase of 17% and 11% respectively as compared to the previous week at an average of USD 2,093 per Mt for black pepper and USD 2,939 per Mt for white pepper. The increase of Viet Nam price could be contributed to the significant increase of China's pepper demand after China's lock down ended. Sri Lanka black pepper was reported steady and was traded at an average of USD 2,733 per Mt. China white pepper was also reported stable averaging at USD 4,114 per Mt.

International market showed similar mixed response with a rather positive outlook. India black pepper was reported stable at an average of USD 4,308 per Mt. Indonesia black pepper was reported with an increase of 1% as compared to the previous week averaging at USD 2,133 per Mt whilst Indonesia white pepper was reported with 1% deficit when compared to the previous week averaging at USD 3,468 per Mt. Malaysia black and white pepper continued to be traded stable and unchanged. Following the local market trend, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 7%, 7% and 10% respectively as opposed to the previous week at an average of USD 2,440 per Mt, USD 2,482 per Mt and USD 3,526 per Mt respectively. China white pepper was reported stable averaging at USD 4,309 per Mt.

US market was reported with a slow movement of several origins. Despite the time of year usually saw more stock of Sarawak from new crop, it was reported to be very quiet. Furthermore, as Indonesia and Brazil offered limited amount with no possible prompt shipment, Viet Nam was able to supply a large quantity to market. US stock for the 3rd and 4th quarters are yet to be covered while buyers are anxious on low price contract.

IMPORT OF PEPPER BY RUSSIA

Russia, officially the Russian Federation, is a transcontinental country in Eastern Europe and North Asia. Russia is by a considerable margin the largest country in the world by area, covering more than one-eighth of the earth's inhabited land area. Furthermore, Russia actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In 2018, Russia was reported to have imported a total 8,047 Mt of pepper which 91% or 7,353 Mt of it comprised of whole pepper while 9% or 695 Mt of it was ground pepper. The average import of pepper by Russia in 2018 was reported to be 671 Mt per month with the highest quantity recorded in May with 1,048 Mt. The total expenditure of pepper import by Russia was reported to be as high as USD 26.2 Million, recording an average price of the total pepper imported by Russia at USD 3,050 per Mt for whole pepper and USD 5,547 Per Mt for ground pepper.

Year 2019 saw an increasing trend in term of quantity of pepper import by Russia. Russia was reported to have recorded a total of 10,306 Mt which 90% or 9,236 Mt of it comprised of whole pepper and 10% or 1,070 Mt of it was ground pepper. Thus, recording an increase of 28% when compared to the same period in 2018. The average pepper imported by Russia was reported at 859 Mt per month which peaked in December with 1,065 Mt. Although increasing in terms of quantity, Russia was reported to have spent 3% less on its pepper import, totaling at USD 25.4 Million, Thus, recording an average price of the total pepper imported by Russia at USD 2,356 per Mt for whole pepper and USD 3,471 per Mt for ground pepper or a decrease by 23% and 37% respectively as compared to 2018.

As of February 2020, Pepper import by Russia was reported with an increase of 38% as compared to the same period in 2019, totaling at 1,208 Mt which comprised of 86% or 1,038 Mt of whole pepper and 14% or 170 Mt of ground pepper. The total expenditure of pepper import by Russia as of February 2020 was reported with an increase by 12% when compared to the same period in the previous year, totaling at USD 2.9 Million. Thus, recording an average price of the total pepper imported by Russia at USD 2,353 per Mt for whole pepper and USD 2,943 per Mt for ground pepper.

The top five countries of origins of Russia's pepper as of February 2020 were reported to be Viet Nam with 672 Mt (an increase of 52% as compared to the same period in 2019), Indonesia with 225 Mt (an increase of 189 Mt), India with 135 Mt (an increase of 89 Mt), Sri Lanka with 88 Mt (a decrease of 24%) and Brazil with 57 Mt (a decrease of 66%). The decreased of Russia import from Brazil and Sri Lanka could be contributed to Russia preference of importing from other origins countries which offered more competitive price such as Viet Nam (an increase by 231 Mt as compared to the same period in 2019) and Indonesia (an increase by 189 Mt).