Market Report – Week 6 (6 February 2025)

African Markets

Kenya – Good General Demand

• Mombasa Auction:

  • Offerings & Prices: 210k packages were on offer, with 25% (47k packages) unsold. The average auction price shed 1 USC, closing at USD 2.14/kg.

  • Grade Trends:

    • BP1s:

      • KTDA EoR: Steady demand, selling at easier levels following quality.

      • KTDA WoR: Traded steady at irregular levels, with balance tending easier.

      • Medium BP1s: Reduced demand, trading irregularly steady.

      • Plainer BP1s: Steady demand, though prices varied from firm to easier.

    • PF1s:

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

      • KTDA WoR: Followed a similar trend, trading steady to slightly easier.

      • Medium PF1s: Good interest, trading irregularly firm.

      • Plainer PF1s: Maintained demand, though prices were irregularly steady to slightly easier.

    • Dust Grades:

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

      • Medium & better plainer PD/D1s: Egyptian, UK, and Pakistan buyers remained active, with prices steady to easier.

      • Plainer types: Held firm.

  • Active Markets:

    • Egypt and Yemen packers maintained demand.

    • Pakistan and Sudan provided useful support.

    • UK, Afghanistan, Kazakhstan, and Russia were steady.

    • CIS, Bazar, and China were quieter.

  • Weather & Crop:

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

    • Daytime temperatures increased, while night temperatures dropped.

    • Crop harvest remained steady.

  • Market Outlook:

    • Demand for quality teas remains strong, though bulk grades are struggling.

    • KTDA’s older reprints continue to be sold at lower levels, affecting pricing stability.

Malawi – Selective Demand

• Blantyre Auction:

  • Offerings & Prices: 4,040 packages were on offer.

  • 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: Steady demand, 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: 6.467 million kgs were offered. The market tended easier, with mixed demand for high-grown teas.

  • Grade Trends:

    • Ex-Estate:

      • BOPs declined 5-15 USC.

      • Better BOPFs eased 5-10 USC, while bottom types gained 8 USC.

      • Nuwara Eliya BOP/BOPFs held firm.

      • Uva BOP/BOPFs declined 10-20 USC.

    • CTC:

      • Low-grown PF1s shed 20 USC.

      • BP1s traded at irregular levels.

      • High-grown & medium PF1s remained firm.

    • Medium Grown:

      • Better OP1s held firm, while bottom types gained 5-10 USC.

      • BOP1s declined 10-15 USC.

      • FBOPs eased 10 USC.

      • Better FF1s shed 10 USC, while others held firm.

      • OP/OPAs maintained last week’s price levels.

    • Low Grown Leafy:

      • OP1s dropped 20-40 USC.

      • BOP1s shed 10-15 USC.

      • Better OP/OPAs held firm, while others eased 3-5 USC.

      • Better PEK1s held firm, while others declined 15 USC.

      • PEKs remained firm.

    • Low Grown Small Leaf & Premium:

      • FBOPs declined 10-15 USC.

      • FF1s eased 10-12 USC.

      • FFs remained firm.

      • BOP/BOPFs shed 10-12 USC.

      • Premiums remained firm.

    • Off Grades:

      • Better FGS1s held firm, while others declined 15 USC.

      • FGS remained firm.

      • Best & below-best BMs shed 2-4 USC.

      • BPs maintained price levels.

      • Select best & best BOP1As eased 5-10 USC, while others held firm.

    • Dusts:

      • High-grown dusts gained 3-6 USC.

      • Secondary dusts held firm.

      • Low-grown better teas gained 5-10 USC, while others shed 4-8 USC.

  • Market Outlook:

    • Quality Orthodox teas are still in demand, while CTC demand remains mixed.

    • Export buyers are cautious amid pricing fluctuations.

India – Good Demand

• North & South India:

  • CTC Assams sold in line with quality, with best and good types easing.

  • Orthodox teas met strong competition, selling in line with quality.

  • Selected, cleaner blacker liquoring teas performed well.

  • South India:

    • CTC & Dust: Firm to easier.

    • Orthodox: Whole leaf grades firm to dearer.

    • Secondary brokens & fannings: Fully firm to occasionally dearer.

Indonesia – Less Demand

• Jakarta Auction:

  • Offerings & Prices: 10,280 packages on offer, with 38% unsold.

  • Market Trends:

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

    • Reduced buyer participation due to logistical challenges.

  • Weather & Crop:

    • Daily rains continued, though periods of sunshine were needed.

Vietnam – Available Stock

• Tet holiday ended, but production remained slow.

• Heavy rains increased humidity levels, affecting drying conditions.

Global Outlook

• Supply & Demand:

  • High-quality teas remain in demand, while bulk grades are struggling.

• Pricing Trends:

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

• Logistics:

  • Container shortages persist, impacting exports.

The global tea market remains mixed, with strong demand for quality teas, while bulk and lower grades continue to face pricing pressure.