Pepper prices on 07/01/2024: Hot increase in June

Pepper prices on July 1 globally

Globally, the pepper market remains stable on July 1.

Accordingly, the price of black pepper from Lampung, Indonesia, remains at $ 7,106/ton. The price of white pepper from Muntok, Indonesia, stands at $ 9,048/ton.

The price of Kuching ASTA black pepper from Malaysia remains at $ 7,500/ton, while white pepper from Malaysia is priced at $ 8,800/ton.

In the Brazilian market, the price of ASTA 570 black pepper remains at $ 7,300/ton.

In Vietnam, the export price of 500 g/l black pepper is traded at $ 6,500/ton, while the 550 g/l type is priced at $ 7,000/ton. The export price of white pepper remains at $ 9,500/ton.

The pepper market today remains stable. Summarising last week, global pepper prices fluctuate oppositely with only Sri Lanka and Malaysia reported to have increased.

Thus, global pepper prices on 07/01/2024, show no new changes compared to yesterday.

Pepper prices on July 1 domestically

Domestically, the pepper market on July 1 remained unchanged compared to yesterday.

Specifically, Dak Lak is purchasing pepper at VND 155,000/kg;

Today's pepper price in Dak Nong is trading at VND 157,000/kg;

In Gia Lai, today's pepper price is being purchased at VND 153,000/kg;

Traders in Dong Nai are still trading pepper at VND 153,000/kg;

Similarly, today's pepper price in Ba Ria - Vung Tau remains at VND 154,000/kg;

Traders in Binh Phuoc are trading pepper at VND 155,000/kg.

The domestic pepper price today shows no new changes with the highest level at VND 157,000/kg. Last week, the domestic pepper market saw a significant drop ranging from VND 4,000 - 5,000/kg.

However, summarizing June 2024, domestic pepper prices continued to rise sharply, averaging between VND 23,000 and VND 27,000/kg - the third consecutive month of strong increases.

Assessing this month, global pepper supply continues to depend on shipments from Vietnam, as other countries' harvest seasons have not yet begun. This has helped Vietnam's pepper prices maintain a strong upward trend throughout the second quarter of 2024.

Additionally, ongoing sea freight rates continue to exert pressure on commodity prices, including pepper. Speculative activities have also contributed to recent price hikes.

Export companies note that shipping conditions to key export markets are highly strained. The route to Europe is particularly affected, with exorbitant and limited vessel availability driving shipping costs up by 60%-70% compared to the beginning of the year.

Many containers are currently stranded in ports due in part to vessels diverting towards China to prioritize exports to the US before August 1, aiming to avoid US anti-dumping tariffs. This congestion has caused shortages of vessels in ports like Singapore and China, further escalating freight rates. Conflicts in the Red Sea have also contributed to these challenges.

High freight costs have significantly boosted Vietnam's pepper export prices this month. Despite a decrease in export volume compared to the same period last year, export values have surged, likely enabling the pepper industry to achieve its billion USD export target this year.

Thus, domestic pepper prices on 07/01/2024, are trading around VND 153,000 - 157,000/kg.

$ 1 = VND 25.214 - Source: Vietcombank.