Market Report – Week 2 (9 January 2025)

Global Tea Market Overview

African Markets

Kenya – Strong Start to the Year

• Mombasa Auction:

  • Offerings & Prices: 160k packages were offered, with 18% (28k packages) remaining unsold. The average auction price increased by 5 USC to USD 2.14/kg.

  • Grade Trends:

    • BP1s: KTDA EoR BP1s met improved demand at firm to dearer levels, following quality. KTDA WoR BP1s also saw steady demand, trading firm to dearer. Medium BP1s remained steady to easier. Plainer BP1s traded firm to dearer, following quality.

    • PF1s: KTDA EoR PF1s generally traded firm, with quality types gaining slightly. KTDA WoR PF1s saw steady demand, with Pakistan leading purchases. Medium PF1s gained demand, trading firm to dearer. Plainer types also saw good interest, selling firm to dearer.

    • Dust Grades: Best PD & D1 types sold firm to dearer, while medium and plainer PD/D1s met improved demand from Egyptian packers, UK, and Pakistan, selling firm to dearer.

  • Active Markets:

    • Pakistan and Egyptian packers were dominant buyers, with support from the UK, Afghanistan, Yemen, and Sudan.

    • Bazar was slower, while Russia and CIS maintained steady interest.

  • Weather & Crop:

    • Weather is shifting to sunnier conditions with occasional showers.

    • EoR is becoming drier and hotter, while WoR still enjoys favorable conditions.

    • Day temperatures are increasing, while night temperatures are dropping.

    • Crop harvest was steady in WoR but showed a gradual decline in EoR.

  • Market Outlook:

    • Availability is expected to improve due to delayed sales from the previous year.

    • The market is expected to be irregular, with demand for quality teas remaining firm while lower grades ease.

    • KTDA’s strategy in handling unsold teas will impact future trends.

Malawi – Weaker Demand

• Blantyre Auction:

  • Offerings & Prices: 3,320 packages were offered, with limited demand.

  • Grade Trends:

    • BP1s saw limited interest.

    • PF1s and PDs faced weak demand, while D1s traded steady.

    • Off-grade fannings met selective demand.

  • Weather & Crop:

    • Hot and dry weather dominated, affecting production.

    • Crop intakes increased seasonally but remain below expected levels.

Other African Markets

• Uganda: Strong demand, particularly for brighter liquoring teas, with prices firm to slightly dearer.

• Tanzania: Selective demand as auction volumes remained small.

• Rwanda: Market weakened, especially for brokens, while other grades held steady.

• Burundi: Limited availability with selective demand at steady to easier levels.

Asian Markets

Sri Lanka – Mixed Demand

• Colombo Auction:

  • Offerings & Prices: The first sale of the year concluded with mixed trends.

  • Grade Trends:

    • Ex-Estate:

      • BOPs gained by 10-20 USC.

      • BOPFs varied, with better types losing 4-8 USC, while others gained 13 USC.

      • Nuwara Eliya BOPs declined by 25 USC, while BOPFs saw improved demand.

      • Uva BOPs dropped 15-20 USC, while BOPFs gained 15-20 USC.

    • CTC:

      • Low-grown PF1s remained firm, while BP1s were mostly unsold.

      • High-grown & medium PF1s gained 20 USC.

    • Medium Grown:

      • OP1s remained firm, while others gained 10 USC.

      • BOP1s gained 15-20 USC.

      • FBOPs gained 10-20 USC, while FF1s remained steady.

      • OP/OPAs gained 5-10 USC.

    • Low Grown Leafy:

      • OP1s gained up to 50 USC, while other OP1s strengthened by 10-25 USC.

      • BOP1s gained 10-15 USC.

      • OPAs and OPs gained 10-15 USC.

      • PEK1s were steady, while PEKs declined by 10-15 USC.

    • Premium & Small Leaf:

      • FBOPs gained 15-20 USC, while FF1s remained firm.

      • FFs were steady.

      • BOP/BOPFs lost 8-10 USC.

    • Off Grades:

      • FGS1s gained 10-14 USC, while better FGSs eased 5-10 USC.

      • BMs gained 10-12 USC.

      • BPs gained 10-20 USC.

      • BOP1As remained firm, while others gained 4-6 USC.

    • Dusts:

      • High-grown dusts gained 10-12 USC.

      • Secondary dusts strengthened by 5-10 USC.

      • Low-grown dusts were dearer by 5-10 USC.

• Market Outlook:

  • Stronger demand for low-grown leafy teas, while high-grown varieties faced irregular demand.

  • The market direction will be influenced by weather and global demand trends.

India – Strong Demand

• North & South India:

  • Offerings & Prices:

    • Limited Orthodox tea availability drove marginal price gains.

    • CTC demand was steady, with better grades gaining.

  • Market Outlook:

    • Demand for quality teas remains high, though weaker grades struggled.

    • The impact of previous weather disruptions continues to influence supply.

Indonesia – Steady Demand

• Jakarta Auction:

  • Market Trends:

    • 7,700 packages were offered, with 24% unsold.

    • Java/Sumatra Orthodox and CTC teas traded steady to firm.

  • Weather Impact:

    • Favorable weather for tea crops, with daily rainfall followed by sunshine.

Vietnam – Slower Production

• Market Conditions:

  • Heavy rainfall and wet conditions slowed harvesting.

  • Factories focused on selling existing stock rather than new production.

Global Outlook

• Supply & Demand:

  • The market remains steady, with expectations of improved crop intakes.

  • Seasonal demand fluctuations are expected as auctions restart.

• Pricing Trends:

  • Quality teas continue to command premiums, while bulk grades trade steady.

• Shipping & Logistics:

  • Delays remain a concern, though shipping lanes are stabilizing.

The first sale of 2025 opened with steady demand across most tea-producing regions. While higher-quality teas remain in demand, lower grades continue to face selective interest. The coming weeks will provide a clearer picture of market trends as supply stabilizes.