Unlike the persistently sluggish small chilli pepper market, larger chilli papers are not only fetching high prices but also enjoying hot sales, but will this last, and what risks will the market face in a later period?
In the main production area of Xinjiang, current buyers are mainly from Chengdu and surrounding areas of Sichuan and Jiaozhou, Shandong. Their willingness to purchase goods is polarized. Sichuan buyers who are actively purchasing have a large demand, which has led to a shortage of tieban peppers and rising prices.
Buyers from Qingdao, however, are reluctant to purchase goods, as they generally believe that current supplies are not suitable for storage due to high prices. At the same time, some buyers still have some stock and are not in a hurry to make new purchases, hoping to wait for the price to go down before purchasing. As the demand from these buyers has decreased, it has not played a role in further promoting the current bullish large chilli pepper market.
New-season dried chilli peppers from Xinjiang have only just started to flood into the market. As the current supply is mainly used to make up the gap left in an earlier period, the new crops are still in short supply. In the short run, the market for new crops will remain bullish. In the long run, however, as large chilli peppers do not have the conditions for continued rises in price, prices may drop in a later period due to expanded acreages.