Market Report – Week 49 (5 December 2024)

Global Tea Market Overview

African Markets

Kenya – Steady Demand

• Mombasa Auction:

  • Offerings & Prices: 165k packages (11.5 million kgs) were offered, with 25% remaining unsold, consistent with previous weeks. The average auction price declined by 2 USC, closing at USD 2.11/kg.

  • Grade Trends:

    • Flavoury KTDA EoR BP1s met less demand and traded at steady to easier levels.

    • KTDA WoR BP1s saw selective demand, trading steady to slightly easier.

    • Medium BP1s showed steady to firm demand, while plainer brokens met improved demand and sold dearer.

    • PF1s saw better absorption, particularly for plainer types, which sold firm to dearer.

    • PD grades remained firm at the best levels but were irregular at lower grades.

  • Active Buyers:

    • Pakistan packers were more active, while Afghanistan and Bazar markets remained slow.

    • Yemen showed increased interest, supported by Egyptian packers.

    • UK, Kazakhstan, and other CIS countries maintained steady activity, while Russia and Sudan slowed.

  • Weather & Crop:

    • Favourable weather with strong rains across major tea-growing regions, including Kericho, Sotik, Nandi, and Nyeri.

    • Crop intakes improved slightly, with expectations for rising production due to increasing temperatures.

  • Market Outlook:

    • A two-week break for the holidays is expected to slow market activity.

    • Availability in the new year is expected to be strong, though quality may be affected due to altered weather conditions.

Malawi – Improved Demand

• Blantyre Auction:

  • Offerings & Prices: 2,840 packages were offered, with strong demand for BP1s.

  • Grade Trends:

    • PF1s saw selective demand at brokers' valuations.

    • D1s maintained strong demand at last week’s prices.

    • Poor-leaf off-grade fannings gained 3 USC, while PDs and off-grade dusts were largely neglected.

  • Weather & Crop:

    • Hot and cloudy conditions persisted, with rainfall recorded on November 25, 28, and 29.

    • Crop intakes continued to improve steadily.

Other African Markets

• Uganda: Improved demand for brighter liquoring teas; prices remained steady to slightly easier, with dust grades holding firm.

• Rwanda: Less demand due to high price levels, expected to correct before demand picks up.

• Tanzania & Burundi: Limited availability, with selective demand for secondary market teas.

Asian Markets

Sri Lanka – Strong Demand

• Colombo Auction:

  • Offerings & Prices: 4.98 million kgs were offered, with strong market demand.

  • Grade Trends:

    • Ex-Estate Teas: BOPs gained USC 10-15; BOPFs strengthened by USC 10-30.

    • CTC: Low-grown PF1s shed USC 10, while BP1s held firm. High and medium-grown PF1s remained steady.

    • Medium Grown Teas: OP1s gained USC 10-15; better BOP1s gained USC 15.

    • Leafy Teas: OP1s and OPAs saw gains of USC 10-20.

    • Premium Teas: FBOPs gained USC 15-17, while FF1s strengthened by USC 10-15.

    • Dusts: High-grown dusts were mixed, while low-grown dusts gained USC 5-10.

  • Market Outlook:

    • Buyers remained cautious but were willing to pay premiums for high-quality teas.

India – Selective Demand

• North & South India:

  • Offerings & Prices: 4,980 packages were offered, with 28% unsold.

  • Grade Trends:

    • Orthodox and CTC teas were selling at steady to firm levels.

    • North Sumatra PF and CTC fannings traded at firm to dearer levels.

  • Market Outlook:

    • Exporters were less active, with local demand dominating sales.

    • The last two sales of the year will offer 9,000 packages each.

  • Weather & Crop:

    • Heavy rains were observed across all planting areas, improving crop prospects.

Indonesia – Slower Demand

• Jakarta Auction:

  • Market Trends:

    • Reduced demand as the end of the season approaches.

    • Stockpiles of various grades are easing price pressures.

  • Weather Impact:

    • Changing weather patterns are causing fluctuations in production.

Vietnam – Moderate Demand

• Market Conditions:

  • Production is slowing due to weather inconsistencies.

  • Factories are adjusting by managing stock levels carefully.

Global Outlook

• Supply & Demand:

  • Markets remain steady with selective buying.

  • Seasonal breaks will impact short-term sales, but demand is expected to rise in early 2025.

• Pricing Trends:

  • Premium teas continue to perform well, while lower grades face price corrections.

• Shipping & Logistics:

  • Container shortages and increased transit times remain challenges, particularly from East Africa and South Asia.

The global tea market remains stable as the year comes to an end, with strong demand for high-quality teas and market corrections expected in early 2025.