Fluctuations in the Chinese ginger market have been difficult to predict this year. The export price showed a rising trend for a long period, but after National Day [October 1, 2020], the price began to stabilize, even slightly decline. Traders in the ginger market are careful about the high prices, whether they are buyers or traders with empty warehouses, they all wait to see how the price will develop. The market has slowed down, because traders are hesitant to show enthusiasm.
Ginger processing factory
"The export price of Chinese ginger already showed signs of stabilization in the last 2-3 weeks. The overall export volume is small in comparison with the same period last year. Some buyers from Southeast Asia and the Middle East have already stopped buying old ginger from storage. They are waiting for the new harvest to enter the market. In addition, some overseas buyers have switched to ginger suppliers in Brazil and Peru because the price of Chinese ginger is too high." This is according to Jim of Qingdao Dawei Tianyuan Foodstuff Co., Ltd.
The Covid-19 pandemic still rages in many countries across the globe. Chinese ginger traders are worried about the imminent second lockdown in overseas markets. The pandemic has not yet impacted the purchase volume of ginger this year, but the pandemic did affect port operations and other aspects of ginger distribution. As a result, the shipping cost recently increased. Considering the problems with distribution and the closing down of many restaurants, the ginger market is likely to suffer from the continued outbreak of Covid-19.
The current export price of Chinese ginger is 80% higher than around this time last year. "Looking at the conditions for this situation, the most important reason that comes to mind is the early arrival of fresh ginger. This year ginger will arrive on the market 10 days earlier than in 2019. Markets in Southeast Asia and the Middle East are already buying fresh ginger, but the price of old ginger is still very high. However, we do not think that the export price of Chinese ginger destined for Europe will continue to rise," said Jim.
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Qingdao Dawei Tianyuan Foodstuff Co., Ltd.
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