Market Report – Week 5 (30 January 2025)

African Markets

Kenya – Good General Demand

• Mombasa Auction:

  • Offerings & Prices: 205k packages were offered, with 23% (47k packages) unsold. The average auction price shed 2 USC, closing at USD 2.15/kg.

  • Grade Trends:

    • BP1s:

      • KTDA EoR: Flavoury BP1s met steady demand, trading firm to dearer.

      • KTDA WoR: Held firm, though some lots trended easier.

      • Medium & plainer BP1s: Met reduced demand, trading irregularly easier.

    • PF1s:

      • KTDA EoR: Selective interest, with quality invoices holding firm, while others were steady to easier.

      • KTDA WoR: Traded at steady to easier levels.

      • Medium PF1s: Good interest, trading firm to dearer.

      • Plainer PF1s: Maintained steady demand, trading firm.

    • Dust Grades:

      • Best PD & D1: Irregular demand, trading firm.

      • Medium & better plainer PD/D1s: Steady demand from Egyptian, UK, and Pakistan buyers, trading firm to dearer.

      • Plainer types: Held steady.

  • Active Markets:

    • Egypt and Yemen buyers were dominant.

    • Pakistan and Sudan provided steady demand.

    • UK, Afghanistan, Kazakhstan, and Russia remained stable.

    • CIS, Bazar, and China were quieter.

  • Weather & Crop:

    • Dry conditions persisted, which is normal ahead of the long rains in March.

    • Day temperatures increased, while night temperatures dropped.

    • Crop harvest remained steady.

  • Market Outlook:

    • Markets remain irregular, with quality teas holding firm and others trending easier.

    • The market's direction depends on how KTDA handles unsold teas, which have reportedly declined in volume.

Malawi – Selective Demand

• Blantyre Auction:

  • Offerings & Prices: 4,040 packages were offered.

  • Grade Trends:

    • BP1s: Selective demand at steady rates.

    • PF1sc: Neglected, except for one lot at last week’s prices.

    • PF1 seedlings: Traded 5 USC below valuations.

    • PDs: Selective demand at easier rates.

    • D1s: Met good demand, trading 5 USC below valuations.

    • Offgrade fannings & dust: Strong demand at steady to dearer rates.

  • Weather & Crop:

    • Cloudy conditions with continuous rain in Mulanje & Thyolo.

    • Thyolo received heavier rainfall (104-286mm) than Mulanje (40-146mm).

    • Black leaf production increased, and cup quality remained strong.

    • Crop intakes continued to rise steadily.

  • Market Outlook: Remains steady, with strong demand for quality teas.

Other African Markets

• Uganda: Demand remained steady, with brighter teas trading firm while others were slightly easier.

• Tanzania: Improved demand, with auction volumes increasing.

• Rwanda: Brokens lost value, while other grades met selective demand at steady to easier rates.

• Burundi: Limited availability, with firm demand for select grades.

Asian Markets

Sri Lanka – Fair Demand

• Colombo Auction:

  • Offerings & Prices: 6.432 million kgs were offered. The market remained buoyant, though some grades trended lower.

  • Grade Trends:

    • Ex-Estate:

      • Best BOPs remained firm, while others declined 6-15 USC.

      • Better BOPFs gained 3 USC, while bottom types rose 10 USC.

      • Nuwara Eliya BOP/BOPFs surged by 50-60 USC.

      • Uva BOP/BOPFs declined 3-5 USC.

    • CTC:

      • Low-grown PF1s held firm.

      • BP1s sold at irregular levels.

      • High-grown & medium PF1s remained firm.

    • Medium Grown:

      • Better OP1/BOP1s held firm, while bottom grades gained 15 USC.

      • Better FBOPs remained firm, while others dropped 10-20 USC.

      • Better FF1s stayed steady, while others declined 15 USC.

      • OP/OPAs strengthened 15-20 USC.

    • Low Grown Leafy:

      • OP1s rose 20-30 USC.

      • Better BOP1s remained firm, while others declined 15 USC.

      • OP/OPAs gained 10-15 USC.

      • PEK/PEK1 held firm.

    • Low Grown Small Leaf & Premium:

      • FBOPs held steady, while bolder varieties declined 10 USC.

      • FF1s dropped 10 USC.

      • FFs remained firm.

      • BOP/BOPFs shed 10-12 USC.

      • Premiums held firm.

    • Off Grades:

      • Better FGS1 gained 3-6 USC, while others held firm.

      • FGS rose 4-8 USC.

      • BMs gained 3-6 USC.

      • BPs increased 4-8 USC.

      • BOP1As strengthened 10-20 USC.

    • Dusts:

      • High-grown dusts gained 4-8 USC.

      • Secondary dusts rose 8 USC.

      • Low-grown better teas dropped 5-10 USC, while others gained 3-6 USC.

  • Market Outlook:

    • Limited quantities of high-quality Orthodox teas were easily absorbed.

    • The CTC segment saw mixed demand, with medium teas performing better.

    • "Import for re-export" discussions continue, raising concerns over cheaper teas affecting India’s export reputation.

India – Limited Demand

• North & South India:

  • Orthodox teas saw steady demand, with cleaner, blacker types commanding higher prices.

  • CTC demand remained sluggish, with mixed results for finer grades.

  • Uncertainty over tea imports into India has impacted market sentiment.

Indonesia – Fair Demand

• Jakarta Auction:

  • Offerings & Prices: 7,840 packages were offered, with 25% unsold.

  • Market Trends:

    • Java & Sumatra Orthodox and CTC sold at steady to firm levels.

    • Java & Sumatra BT grades were well absorbed at firm to dearer rates.

  • Weather & Crop:

    • Daily heavy rainfall in West, Central, and East Java led to isolated floods and landslides.

  • Market Outlook:

    • Demand remains stable despite weather-related disruptions.

Global Outlook

• Supply & Demand:

  • Quality teas continue to see strong demand, while bulk grades struggle to find buyers.

• Pricing Trends:

  • Premium teas remain firm, while bulk teas trade steady to easier.

• Shipping & Logistics:

  • Freight rates remain stable, but container shortages persist.

The global tea market remains strong, particularly for high-quality teas, while bulk and lower grades face pricing pressure. As weather and demand patterns shift, markets are expected to fluctuate accordingly.