Market Report – Week 26

🇰🇪 Kenya – Reduced Demand

Demand fell this week with 214,000 packages on offer, yet 47% remained unsold. Average auction price dropped by 4 US cents to USD 1.91/kg.

• BP1s: Flavory East of Rift (EoR) teas held firm; below-best and plainer types saw selective or no interest.

• PF1s: Improved demand for medium types at firm to dearer levels; plainer grades saw mixed results.

• Dust Grades: Quality types were firm to dearer, while plainer types experienced improved demand.

Key Buyers: Pakistan remained dominant; UK and CIS showed improved interest. Egypt and Yemen steady; Sudan absent.

Weather & Outlook: Continued rainfall supports production. Crop harvest remains steady, but seasonality is expected to reduce fresh availability. Demand recovery expected as major markets return.

🇲🇼 Malawi – Improved Demand

Blantyre saw better demand, though main grades like BP1 and D1 had limited interest.

• PF1 Seedlings: Steady demand.

• Offgrades: Good demand sustained.

• Dust: Weak activity.

Weather: Thyolo and Mulanje experienced Chiperoni showers; crop intakes declined due to winter and factory maintenance.

🌍 Other African Markets

• Uganda: Good demand across grades at steady to slightly easier levels. Rains expected to boost crop.

• Tanzania: Limited supply met with steady demand.

• Rwanda: Strong demand for BP1s and PF1s, selling at firm to dearer rates.

• Burundi: Higher availability but poor quality and price expectations limited activity.

🇱🇰 Sri Lanka – Steady but Easier

Colombo offered 6.54 million kgs. Demand was steady but prices mostly declined across grades.

• High Grown: Irregular. Select Best BOPs up by USC 6; others down USC 4–10.

• Medium Grown: OP1s down by USC 10; FBOPs eased by USC 10–20.

• Low Grown: OP1s eased USC 10–25; BOP1s mixed; Premium varieties dropped USC 20–30.

• Dust: Firm to dearer across all regions.

🇮🇳 India – Fair Demand

Both South and North Indian markets showed fair to good demand.

• South India: Orthodox and CTC dusts firm to dearer. Leaf grades mixed.

• North India: Orthodox teas had fair demand. Tippy teas sold based on quality; smaller brokens saw reduced interest.

Note: Tea Board issued show-cause notices to exporters for alleged mislabeling of African teas as Indian.

🇮🇩 Indonesia – Fair Demand

4,860 packages on offer; 23% unsold. Steady to firm sales, with West Java PFs doing particularly well.

Logistics Update: Freight rates from Indonesia to EU/CIS are rising due to the Iran–Israel conflict. Minor increases also noted to Asia Pacific destinations.

📊 Key Stats & Insights

• Kenya’s March tea output: 37.9 million kg (↓30% YoY)

• Sri Lanka: April production at 26.4 million kg (↑23% YoY)

• South India: April output up 77% YoY

• Auction volumes:

  • Mombasa: 214K (↓ from 225K two weeks ago)

  • Colombo: 12K

  • Kolkata: 130K

  • Guwahati: 154K