Pangasius, also called Basa, has a significant market in the world. The central resource of Pangasius is in Vietnam. Under the influence of the pandemic, the panga market has been suffering during 2020. Ocean Treasure will take a full review of the panga market with the price trend.
In the past eleven months, the panga demand dropped a lot in the first half-year because China canceled many orders in the first quarter. Even though the export to the EU increased and the USA rebound, the panga market still suffered greatly. The price of Panga dropped almost 17% in the first half-year. After June, the market rebound, and the price started to recover. The Christmas purchase started early this year, and the demand just boomed after July. The US market started with a strong need for Panga, Tilapia, and Vannamei. Due to the low price in the first half-year, some farmers quit farming, which caused the lack of raw material at first. The price of Panga consequently was increasing in this situation. It hit a 32.3% price increase until the end of October.
Market for Now
Due to the Christmas purchase and New Year purchase, the panga market seemed to find a way out. Many factories stocked tons of Semi-finished products of panga fillet and ready for the Chinese New Year purchase. As for the last few years, usually, there was another wave of purchase right after Christmas. That is the Chinese New Year. However, the purchase of Chinese New Year met issues this year. Many cancellations of orders and the whole frozen food import market in China is quiet. In November, Christmas’s purchase was over, and the price just had a sharp drop of 7.5% in one month.
Market for Future
At the end of the year, Panga’s price will usually increase due to the lack of raw material. However, the stock is full this year. Due to the Chinese market’s quiet, the panga market started to sell the Panga at a bit low price to get the cash flow to run the business. So the CFR of Panga is stable, even though the freight cost is exceptionally high recently. From the perspective of Ocean Treasure, the price now for Panga is very attractive. At present, it’s almost like in the stage of clearing the stocks even at a loss.