Supply of Chinese chilli peppers may remain tight before holiday

The Spring Festival is 20 days away. Historically, the pre-holiday purchasing season would be in full swing around this time. This year, although there are purchasing activities, the enthusiasm among trading participants in the production and sales areas of chilli peppers is significantly lower due to Covid-19. Prices also lack the momentum to pick up.

Due to the recent outbreak, various provinces in China have tightened local control measures. From early January, most growers in Henan have been actively selling their stock. After less than 3 weeks, growers who wish to clear their stock before the holiday have limited volumes remaining, and others who still have stock are not in a hurry to sell. Therefore, in various production areas in Henan, the recent supply has decreased and prices have continued to rise.

The season in the Jinxiang production area in Shandong is nearing its completion, and the remaining volumes are very small, so it is difficult to organize the supply. Due to its proximity to Hebei, local trading activities in Wucheng production area in Shandong were forced to stop, in order to prevent further development of the outbreak; only sporadic transactions were conducted privately.

Hebei, the main supplier of chilli peppers, has suspended purchase and sale activities due to the continuous development of the local outbreak. Over the past three weeks, only a small volume from this province was traded at the beginning of the period. At the moment, the area is still under strict control measures. Although there are still remaining volumes in Hebei, trading has to wait until after the Chinese New Year.

In general, the supply may remain tight before the Spring Festival.


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