W11 White Pepper Update: Global White Pepper Prices Stable Across Markets, Indonesia Experienced Slight Fluctuations

Published Mar 25, 2024

In W11 in the white pepper landscape, the global pepper market saw stability overall from March 11 to 16, with Indonesia experiencing minor price fluctuations while prices remained steady in Malaysia and Vietnam. However, the IPC predicts a marginal decrease in global pepper output in 2024, primarily due to reduced production in Vietnam. Despite this, Brazil and India expect to witness increased production, though this projection hinges on favorable weather conditions. Other pepper-producing nations are expected to maintain their production levels with minor fluctuations.

Global White Pepper Market Shows Stability in W11 Amid Minor Fluctuations

From March 11 to 13, the global white pepper market experienced price stability across various countries. Indonesian Muntok white pepper remained steady at USD 6,179 per metric ton (mt), while Malaysia's white pepper ASTA maintained its price at USD 7,300/mt. Similarly, the export price of white pepper in Vietnam remained unchanged at USD 5,900/mt.

On March 14, the global pepper market experienced price increases in Indonesia, while prices remained stable in other countries. In Indonesia, the price of Muntok white pepper saw a slight increase of 0.18%, reaching USD 6,190/mt. However, Malaysia's white pepper ASTA price remained unchanged similar to Vietnam's export price of white pepper.

However, on March 16, the pepper market saw a slight decrease in Indonesia, with Muntok white pepper dropping by 0.26% to USD 6,171/mt . Malaysia’s white pepper ASTA and Vietnam’s white pepper prices still remained unchanged.

Global Pepper Prices Stable Amid Forecasts of Reduced Output for 2024

World pepper prices have remained stable, with only India experiencing a decrease in recent weeks. The International Pepper Community (IPC) has forecasted a continued decline in global pepper output for 2024, estimating a reduction of 1.1% year-over-year (YoY), equivalent to 6 thousand mt. This decrease is due to reduced output in Vietnam. However, the IPC anticipates pepper production in Brazil and India to increase, although this projection is subject to weather conditions. Other pepper-producing countries are expected to maintain production levels with minor fluctuations.

Global Pepper Market Expected to Remain Vibrant, Sustaining High Prices

Vietnam's Ministry of Industry and Trade predicts a continued vibrancy in the global pepper market in the near future, attributing this to seasonal differences that will sustain high prices for several more months. While Brazil has concluded its harvest season and Vietnam is currently entering it, Indonesia and Malaysia typically harvest their main crops in July each year. The supply of pepper from Indonesia, Brazil, Malaysia, and Cambodia may not be sufficient to offset Vietnam's reduced export volume, thereby exerting upward pressure on global pepper prices right from the beginning of the season. As a result, world pepper prices increased again in Indonesia on March 14, 2024, compared to the previous day.