The price of baby Chinese cabbage recently showed a downward trend. The price in the Wanbang International Market this week was 1.5 yuan [0.22 USD], while the price of baby Chinese cabbage last week was 2.5 yuan [0.36 USD]. Last month the price was 3 yuan [0.43 USD]. The price decreased by 40% in comparison with last week and by 50% in comparison with last month.
The supply of baby Chinese cabbage currently on the market mainly comes from Hebei, Shanxi, and Neihuang County in Henan, with the majority coming from Hebei and Shanxi, while the baby Chinese cabbage from Neihuang has been on the market for only 3-4 days. Their supply volume is still small. The main reason for the price decrease is excessive supply.
Hebei and Shanxi are in the middle of their baby Chinese cabbage supply season and the supply volume is large enough to satisfy all market demand, but this week baby Chinese cabbage from Neihuang also entered the market. Market supply became excessive and the market could no longer absorb this volume. Baby Chinese cabbage is not easily stored in warehouses, so sellers have no solution but lower their prices. Other local vegetables also entered the market in large volumes and created additional competition as their cost of transport and storage is lower than vegetables from outside the region.
Consumer demand for baby Chinese cabbage is likely to increase as the weather turns colder and more people eat hotpot, of which baby Chinese cabbage is a main ingredient. The supply from Hebei and Shanxi will continue for two more weeks, and when that supply ends, the price is likely to increase again.
Source: Wanbang International Market