Domestic and international gas markets both decrease; Lam Dong avocado specialty price drops sharply

Domestic and world gas markets decrease simultaneously

Gas prices today, June 29, decreased by 2.42%, reaching 2.69 USD/mmBTU for natural gas contracts for delivery in August 2023. After 4 consecutive increases, gas prices have decreased by 0.06 USD/mmBTU despite the increasing demand.

In the domestic market, because the world gas price in June closed at 445 USD/ton, down 110 USD/ton compared to May, businesses adjusted their prices accordingly.

Specifically, starting from June 1, the gas price of Pacific Petroleum Trading Joint Stock Company will decrease by VND35,500/12 kg cylinder and VND148,000/50 kg cylinder. Accordingly, the retail price to consumers will be a maximum of VND403,000/12 kg cylinder and VND1,678,000/50 kg cylinder.

Similarly, the Southern branch of Vietnam LPG Gas Trading Joint Stock Company reduced gas prices by VND35,000/12kg cylinder and VND131,250/45kg cylinder. The retail price to consumers is VND384,912/12kg cylinder and VND1,443,000/45kg cylinder.

City Petro branded retail gas products also decreased by VND2,968/kg. Thus, City Petro’s 12kg gas cylinder will decrease by VND35,500/cylinder, and the 45kg gas cylinder will decrease by VND133,500/cylinder. A representative of Pacific Petroleum Trading Joint Stock Company said that this price reduction was as predicted.

Thus, after the price dropped to 58,000 VND/kg in April, this is the second month that gas prices have continued to decrease. Since the beginning of the year, gas prices have decreased in four months and increased in two months.

Lam Dong avocado specialty price drops sharply

Avocado 034 is a famous specialty of Lam Dong province and was once considered a luxury item. At many times, consumers bought avocados for 120,000 - 180,000 VND/kg, but this year the price is only a few tens of thousands of VND/kg.

Each kilogram of 034 avocado, type two fruits per kilogram, sold at markets and sidewalks in Saigon ranges from 15,000 to 30,000 VND per kilogram, down 20% compared to last year.

A survey in Ho Chi Minh City showed that avocado 034 - a famous specialty fruit of Lam Dong - is sold a lot on Thong Nhat, Pham Van Chieu (Go Vap), Pham Van Dong (Thu Duc), Dien Bien Phu (Binh Thanh) streets with a sharp decrease in price compared to the same period last year.

Retail outlets are sluggish, and buyers are complaining about slow consumption despite the sharp drop in avocado prices. Domestic consumption is slow, and exports to Cambodia and Thailand have also decreased by 20% compared to the same period last year.

Avocado 034 began to be grown in Lam Dong since 2009, by 2012 there were a few dozen households growing it, however this fruit is now spread throughout the Central Highlands provinces. This type of avocado was once sold for 200,000 VND per kg for the 2-fruit-per-kg variety, but in recent years the price has continuously dropped.

Explaining the reason, agricultural traders in the Central Highlands said that the price of this fruit has dropped rapidly due to increasingly weak purchasing power. The quality of this year’s harvest is also uneven as many gardeners are not as keen on taking care of the fruit as in previous years.

Every year, provinces come up with solutions to connect agricultural product consumption, but supply exceeds demand, so prices continuously fall. Some businesses in the area are planning to deeply process this fruit, but consumer demand is low due to the impact of the global economic recession.

According to statistics from Lam Dong province, the province currently has about 10,000 hectares of avocado, of which 034 avocado accounts for 25%. The area planted with 034 avocado in Dak Lak, Dak Nong, Kon Tum, Gia Lai has increased by tens of thousands of hectares, 7-8 times higher than 5 years ago.

Reasons for sharp drop in pepper prices in key markets

Pepper prices today, June 29, in domestic markets have decreased by 500-1,000 VND compared to yesterday. Thus, since the beginning of the week, pepper prices have decreased by 1,500 VND.

Accordingly, in the Central Highlands region, pepper prices dropped sharply by VND1,000/kg and are currently at VND67,500 - VND68,500/kg. Specifically, in Dak Lak and Dak Nong, pepper prices dropped to VND68,500/kg and in Gia Lai, Chu Se pepper prices are only VND67,500/kg.

Similarly, pepper prices in the Southeast region also decreased slightly by VND500/kg. Accordingly, in Binh Phuoc province, it decreased to VND70,000/kg. In Dong Nai, it decreased to VND69,500 and in Ba Ria Vung Tau, it decreased to VND71,000/kg.

According to pepper traders, the decrease in pepper prices is due to a sharp decrease in exports to China in recent times. In addition, information about increased new crop output in some exporting countries as well as the high USD is holding down pepper prices in other countries.

The Ministry of Industry and Trade forecasts that the world pepper market will still face difficulties due to slowing demand in major economies such as the EU, the US, the UK, Japan, etc. Economic difficulties, high inflation, prolonged geopolitical tensions, and instability in the financial market are believed to be the reasons for the decline in pepper demand.

It is forecasted that in the third and fourth quarters of 2023, customers will look to producing countries such as Brazil and Indonesia because this is the pepper harvest time of these two countries.

Domestic coffee prices close to 67,000 VND/kg

Coffee prices today, June 29, in the domestic market continue to remain high, currently fluctuating from 66,300 - 66,900 VND/kg.

Specifically, the price of green coffee beans (coffee beans, fresh coffee beans) in Lam Dong province in districts such as Bao Loc, Di Linh, Lam Ha, coffee is purchased at a price of 66,300 - 66,400 VND/kg, an increase of 200 VND/kg.

Coffee prices in Gia Lai and Kon Tum provinces stood at 66,500 VND/kg.

Coffee prices in Dak Lak province today increased by 200 VND/kg, in Cu M'gar district, coffee prices are currently at 66,600 VND/kg. In Ea H'leo district, Buon Ho town, coffee is purchased at the same price of 66,700 VND/kg.

The Import-Export Department (Ministry of Industry and Trade) cited statistics from the General Department of Customs, saying that in the first 5 months of 2023, Vietnam's coffee exports to the Japanese market reached 48.68 thousand tons, worth 128.57 million USD, down 7.4% in volume and 2.7% in value compared to the same period last year; the average export price of Vietnam's coffee to Japan was 2,641 USD/ton, up 5.1% over the same period last year.

In the first 5 months of 2023, Vietnam's Robusta and Arabica coffee exports to Japan decreased; on the contrary, processed coffee exports to Japan increased.