The Chinese garlic market has steadily grown weaker since the new harvest entered the market, but the price has not seen major fluctuations. Overseas demand for Chinese garlic declined because the shipping cost suddenly increased and the exchange value of the Chinese yuan rose. Chinese garlic exporters have slowed down deliveries. Helen of Junan County Green Food Co., Ltd. recently talked about the current conditions in the Chinese garlic market.
Overseas buyers usually purchase large volumes of garlic after the first of October to prepare for the Christmas season. This volume of orders has already arrived in overseas markets and traders have enough stock in storage. That is why market demand is now much weaker. "In all honesty, the overall export volume of Chinese garlic expanded this year and the price has been stable in the last two weeks. The current FOB price is 910 USD per ton (#5.0 garlic)," explained Helen.
The market has steadily weakened. More recently the shipping cost suddenly increased and many exporters are in trouble. The current price of a standard 40ft shipping container is roughly 600-1,000 USD per week per container. This logically means a sudden rise in the cost price for exporters. many companies previously mainly used CIF prices in export trade, but they are unable to bear the cost price of transport themselves, so they have switched to FOB prices.
When asked about market predictions for the next few weeks, Helen answered, "we expect the market to remain steady in the next few weeks. The price may fluctuate by around 5-15 USD. Garlic prices next year depend on the harvest, the enthusiasm of planters, and how much garlic will be stored in warehouses this year."
For more information:
Junan County Green Foods Co., Ltd.
Tel.: +86 15666337366