The Chinese pepper price has recently showed significant fluctuations. There are several reasons for this development:
1. The purchase price was relatively high last year and many traders currently suffer financial loss because the retail price is too low. They are therefore reluctant to sell their stock, which in turn slows down the market.
2. A growing number of restaurants and processing factories recently resumed operations. Many schools are opening again as well. This adds to the market demand for Chinese pepper.
3. As market demand grows stronger, so does the enthusiasm of visiting traders to purchase new stock from production areas. Pepper production areas in Zhecheng and Lingying in Henan have seen an increasing number of visiting traders purchase pepper to restock their warehouses.
4. India closed its borders in response to the COVID-19 pandemic. The supply volume of Indian pepper is therefore limited. The price of Indian pepper in the Chinese market is therefore rising. This development gives traders confidence to enter the market and purchase pepper. This in turn creates new stimulus for the Chinese pepper market.
Source: e658.cn