At present, public health events across the country are still at the "cusp", and the prevention and control situation is still severe, which has added another unfavorable factor to the already sluggish ginger trade.
The export situation is more sluggish under pandemic controls
According to customs data, the export volume in February 2022 decreased by 12.67% from January, and the average export price decreased by 2.49% from January. Laiwu, Anqiu and other places in Shandong occupy a place in the export of ginger, but local industry professionals in Laiwu have reported that there are currently no export orders due to many factors.
Anqiu exported a lot from China in the early stages, and some of the ginger had problems on the way or after arrival, which led to slow sales in the international market and some could not be sold. Generally speaking, people from foreign countries eat less ginger in summer, and April-July is the off-season for exports. Now, due to the control of Anqiu, the export processing factory has not yet started, and exports are also stagnant. In addition, it was impacted by Thai ginger. The export situation in April, which is the off-season for exports, will be "worse".
The wholesale market is not performing well, and the transaction volume has continued to decrease in recent weeks
In recent weeks, some wholesale markets in the sales area have been controlled. Although most of the markets have been opened one after another, the demand in the terminal market is still relatively limited, and the markets have strictly controlled the flow of people. Catering in some areas is still closed, and the demand has decreased significantly. The downstream second-and third-tier merchants take more goods to maintain rigid demand, and a small number of merchants still mainly absorb the previous inventory, and the products are not sold quickly, and the transaction volume is limited.
On the whole, the current factors affecting the price of ginger can be described as short in profits for many parties, and the development ahead is still grim. The weather has been changing recently, and most growers are stepping up their planting, which is also being carried out in an orderly manner across the country. It is expected that some growers will end their busy farming season, and the supply of products in individual markets may continue to increase. However, due to the limited end-user demand, the price of ginger is likely to stabilize with the weakening trend.
Source: mysteel.com