Watch out! The purchase wave of Vietnam panga from China is approaching.
The Vietnam Pangasius market has the most significant share in the world seafood business. The panga price in 2020 is still at an uptrend level. But since October, the price trend changes. China is the biggest market for importing panga products since 2019. How the price affects and how the price will be. Ocean Treasure will do a summary of the panga.
Panga farming has a significant influence in Vietnam. USA and China are the two primary markets for panga. In 2019, china became the biggest Vietnam panga market. In 2020, due to the pandemic, the demand from China was lower. Panga products are mostly for the catering industries. At the beginning of 2020, the whole catering industry in China is closed. The price of panga had a sharp descent.
The USA market recovery gave Vietnam panga market a signal for the price increasing. And actually, it did. Factories and farmers were ready for the second wave recovery from the Chinese market. However, just after a slight recovery from the Chinese market, the Vietnam panga met another Chinese market issue.
At the beginning of 2021, the inspection check for import frozen seafood is becoming extremely strict. The whole Chinese market showed little confidence in panga purchasing because of the heavy logistics, rigorous inspection checks for the pandemic, and the lowest demand for frozen seafood. The panic of the pandemic could affect the recovery of the panga market in Vietnam.
The poor performance for the Chinese market starts to give problems to the factories. Some small factories have to close because of the low cash flow and the increasing raw material costs—the butterfly effect starts on the farmers, factories, and exporters.
The panga price in a short time is stable. For the last three months, the panga purchase from China is low, and the stock in the Chinese market is less and less. In this Chinese new year, the catering industry in China is much better, which will accelerate the demand for panga products. Another good news is that China starts vaccine program will release the customer’s panic for buying and eating frozen seafood. The freight traffic in china released a bit after the Chinese New Year. The purchase wave of the Chinese market is coming soon. Since China is the biggest market for Vietnam panga, this purchase wave will definitely drive the price to increase.