Beijing, December 10 – The latest Xinhua-China (Wudu)Sichuan Peppercorn Price Index, as of December 10, stood at 643.73 points, marking a slight increase of 1.93 points (0.30%) compared to the last update on November 30. However, the index remains 356.27 points (35.63%) lower than its baseline. Across major production areas, inventory clearance of peppercorns has accelerated year-on-year, and the overall market remains stable with a modest uptick in prices.

Price Analysis by Quality

• Premium Peppercorns: Price index reached 677.79 points, up 0.03% compared to the last period but down 32.22% from the baseline.

• Grade 1 Peppercorns: Price index climbed to 639.09 points, a 0.58% increase from the prior period but a decline of 36.09% from the baseline.

• Grade 2 Peppercorns: Price index reached 617.84 points, showing a 0.23% growth from the last update but down 38.22% compared to the baseline.

Regional Price Trends

• Red Sichuan Peppercorns:

• Price increases were observed in Wudu, Gangu, Qin'an (Gansu) and Ruicheng (Shanxi).

• Price declines occurred in Linxia (Gansu), Hancheng (Shaanxi), and Maoxian (Sichuan).

• Prices remained stable in Feng County (Shaanxi) and Hanyuan (Sichuan).

• Green Sichuan Peppercorns:

• Prices rose in Zhaotong (Yunnan) and Jiangjin (Chongqing), while Jinyang (Sichuan) maintained stability.

Market Dynamics

According to market research conducted in early December, the peppercorn market showed stable activity levels, with no significant changes in overall inventory across major production areas. Wholesale and farmer-held inventories were slightly lower, with the former accounting for 27.05% and the latter at 20.86% of total stock.

Market transactions saw a slight uptick in both turnover speed and activity compared to the previous period. However, Xinhua Index analysts indicate that supply and demand still have room for improvement, and market enthusiasm has yet to fully recover to normal levels.

Challenges and Opportunities

November’s market data revealed that trading volumes in key peppercorn production areas had not rebounded, with monthly sales generally lower than in October. Nevertheless, compared to the same period last year, both wholesale and farmer-held inventories were at lower levels, reflecting accelerated inventory clearance amid persistently low prices.

Heading into winter and the year-end holiday season, there is potential for increased procurement by buyers preparing for New Year and other festive events, which could drive further growth in peppercorn sales.

Strategic Recommendations

For wholesalers and food processing companies:

1. Inventory Management: Monitor your stock closely to mitigate risks associated with market fluctuations.

2. Market Trends: Stay informed about regional price dynamics to seize opportunities for cost-effective procurement.

3. Pricing Strategy: Adjust your selling prices in response to changing market conditions to maintain competitiveness.

As the market evolves, these strategies can help industry players capitalize on emerging opportunities while minimizing exposure to potential risks.

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