Domestic pepper prices: Week of downward adjustment
Today (April 5), domestic pepper prices traded in the range of 138,000 - 139,000 VND/kg, down 1,000-1,500 VND/kg compared to last week.
At the end of last week, pepper prices in Dak Lak and Lam Dong recorded the deepest decrease of 1,500 VND/kg, bringing the purchase price down to the threshold of 139,000 VND/kg. However, this is still the highest price on the market today.
The remaining localities simultaneously reduced by 1,000 VND/kg, with prices in Ho Chi Minh City reaching 138,50 VND/kg, while Gia Lai and Dong Nai provinces are commonly at 138,000 VND/kg.
World pepper prices: Increase
According to the International Pepper Corporation (IPC), pepper prices in leading producing countries recorded a strong upward trend compared to the closing session of the previous week.
Indonesian black pepper closed last week at 7,115 USD/ton, up 121 USD/ton compared to the previous week. At the same time as the survey, Indonesian white pepper prices increased by 100 USD/ton last week, reaching 9,374 USD/ton.
Brazilian black pepper ASTA 570 increased by 100 USD/ton, reaching 6,150 USD/ton. Meanwhile, Malaysian black and white pepper prices remained unchanged, hovering at the price thresholds of 9,300 USD/ton and 12,200 USD/ton respectively.
In the opposite direction, in Vietnam, the export price of black pepper fell by 200 USD/ton, trading in the range of 6,000-6,100 USD/ton for types 500 g/l and 550 g/l. In the same direction, the price of white pepper in Vietnam decreased by 150 USD/ton, to 8,900 USD/ton.
Assessments and forecasts
Last week, domestic pepper prices recorded a sharp increase of 4,500 VND/kg, but immediately adjusted to below the 140,000 VND/kg mark.
This development reflects the clear "fluctuation" state of the market as selling pressure increases and defensive sentiment returns.
One of the factors putting great pressure on the market today is the logistics disruption in the Middle East. Geopolitical tensions have caused transportation costs to increase sharply, many shipping routes have to change routes, avoiding crossing the Red Sea and the Persian Gulf. Notably, the Hormuz Strait area is almost interrupted for container transport, causing many domestic export businesses to limit receiving new orders to avoid cost risks.
