The Chinese market price of red pickled peppers has been high since summer. The price is significantly higher than around this time last year. The price reached a peak in October when the wholesale price of red pickled peppers was around 8-9 yuan [1.21-1.36 USD] per 0.5 kg. The main production area of red pickled peppers in the summer is Hubei. Excessive rainfall in Hubei had a direct impact on the market supply volume of red pickled peppers.
The high price in October was the direct result of poor weather conditions in Hubei production areas. The market supply volume suddenly declined as Hubei production areas withdrew from the market earlier than usual. Furthermore, production shifted to Shouguang in Shandong, Huaian in Jiangsu, and He county in Anhui where production had suffered from poor weather conditions as well. While Hubei withdrew from the market earlier than usual, the production areas that were supposed to take over actually entered the market later than usual. In the end, market supply was extremely limited. This was the complete opposite of last year when the three production areas in Shandong, Jiangsu, and Anhui immediately took over when Hubei withdrew.
He county in Anhui was the first to enter the market in November, which ameliorated the supply shortage and brought the price down. The price of red pickled peppers has seen a steady decline in recent weeks. However, although the price of red pickled peppers is clearly falling, compared to last year the price is still very high.