Green onions have been declining since the beginning of April, and the catering industry has been hit hard by the impact of the pandemic. Under the strong supply and demand pattern, the market for green onions has been declining all the way. At present, the shipping price of shallots is maintained at 1.2RMB/kg, and the closing price of southern onions is as low as 0.6RMB/kg. The international situation is complicated and changeable, and the cumulative export volume of green onions in 2022 will drop by 30% year-on-year.
The price of green onions is currently hovering at a low level. The closing price in Qidong, Jiangsu and Zhangzhou, Fujian was as low as 0.6RMB/kg in May. The increase in planting area and production has made the supply of scallions too large, and with factors such as the pandemic, it is difficult to boost their price.
In 2022, the export of green onions is falling sharply year-on-year, the international situation is complicated, and the export performance of green onions is not good
In recent years, due to restrictions on foreign exchange, the international situation, and shipping costs, the export volume of green onions has been decreasing year by year. Affected by the drop in domestic green onion prices, the average export price of green onions fell sharply. Since 2020, the price of scallions from June to August has experienced a seasonal decline. In summer, affected by the prices of shallots and fruits and vegetables, the price of spring onions has not been driven enough to rise. It is expected that the average export price in June will mainly fluctuate within a narrow range.
The main exporting countries and regions of green onions are Japan, South Korea, Singapore, Malaysia and the Russian Federation, among which Japan's demand accounts for more than 80% of the total export volume. The production of domestic vegetables in Japan is relatively high and the price is relatively high, and more than half of them need to be imported. Chinese vegetables have become Japan's largest vegetable supplier by virtue of their high quality and low price. Among them, green onions, onions, and carrots account for more than 90%. The situation is complicated. As for the development of the catering industry due to the pandemic, the export market of green onions has suffered a setback.
How about the onion market outlook?
Positive: The recent rainy weather has hindered the shipment of green onions, the downstream replenishment enthusiasm is high, the summer catering industry has been boosted, and the demand for condiments has gradually recovered.
Negative: Students will have summer vacations one after another, and the purchasing power of canteens will be greatly reduced. In summer, there will be a large number of spring onions on the market. After the pandemic, the purchasing power of citizens will decline, and the overall price of vegetables will remain low.
Source: mysteel.com