Domestic pepper prices: Second week of sharp decline
As of 11:30 today (October 26), domestic pepper prices are trading between 142,000 - 143,000 VND/kg, an average increase of 2,000 - 3,000 VND/kg compared to last week depending on the region.
At the end of last week, Ho Chi Minh City and Dong Nai recorded the sharpest decrease, about 3,000 VND/kg, to 142,000 VND/kg.
At the same decrease, pepper prices in Dak Lak and Lam Dong are commonly at 143,000 VND/kg.
In Gia Lai, the owner of the growing area sold at the lowest level of 142,000 VND/kg, down 2,000 VND/kg.
World pepper prices: flat in many regions
According to the International Pepper Company (IPC), world pepper prices have mostly maintained a sideways trend.
Of which, Indonesia's black pepper price increased slightly by 1 USD/ton compared to last week and is currently trading at 7,229 USD/ton. Meanwhile, the price of Indonesian white pepper remained unchanged, reaching 10,085 USD/ton.
Brazilian ASTA black pepper is traded at 6,100 USD/ton. In the same direction, ASTA Malaysia black and white pepper prices maintained a stable trading state, selling at 9,500 USD/ton and 12,500 USD/ton, respectively.
Notably, the export price of black pepper in Vietnam has not fluctuated much, currently fluctuating between 6,400 - 6,600 USD/ton for the 500 g/l and 550 g/l type.
Assessment and forecast
The reason for the decline in domestic pepper comes from the slowing export trend when major markets such as China, the US and Europe reduced purchases after a strong increase in mid-September. Domestically, abundant supply makes prices lack recovery momentum.
Along with that, the rising USD exchange rate and escalating international shipping costs are slowing down trading activities. Transportation to Europe increased by about 12%, while the India - Middle East route increased by nearly 8% due to scarcity. Logistics costs account for 15 - 20% of export costs, so many businesses have to adjust delivery plans, prioritizing short-term contracts to reduce risks.
