Market Report – Week 4 (23 January 2025)

African Markets

Kenya – Improved Demand

• Mombasa Auction:

  • Offerings & Prices: 175k packages were offered, with 22% (38k packages) unsold. The average auction price gained 4 USC, closing at USD 2.17/kg.

  • Grade Trends:

    • BP1s:

      • KTDA EoR: Flavoury BP1s maintained good demand, trading firm to dearer depending on quality.

      • KTDA WoR: Quality lots traded firm to dearer, while others were irregularly easier.

      • Medium & plainer BP1s met improved demand, trading firm to dearer.

    • PF1s:

      • KTDA EoR: Irregular performance, with select quality invoices firm, while the majority eased slightly.

      • KTDA WoR: Quality PF1s gained, while others traded steady to easier.

      • Medium PF1s: Met good interest but traded steady to easier.

      • Plainer PF1s: Saw improved demand, trading firm following quality.

    • Dust Grades:

      • Best PD & D1 met increased demand, trading firm to dearer.

      • Medium & plainer PD/D1s saw good demand from Egyptian packers, UK, and Pakistan, trading firm to dearer.

  • Active Markets:

    • Egyptian and Yemen packers were strong buyers.

    • Pakistan and Sudan provided useful support.

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

    • Other CIS countries, Bazar, and China were slower.

  • Weather & Crop:

    • Dry weather dominated, which is typical for this period before the long rains in March.

    • Daytime temperatures increased, while nighttime temperatures dropped.

    • Crop harvest is gradually declining on both sides of the Rift.

  • Market Outlook:

    • Double collections from missed auctions are influencing demand.

    • Quality teas remain firm, while other categories trend easier.

    • The approach of KTDA towards handling unsold teas will impact market movements.

Malawi – Steady Market

• Blantyre Auction:

  • Offerings & Prices: Improved demand across key grades.

  • Grade Trends:

    • BP1s: Selective demand at steady rates.

    • PF1sc: Steady demand at last week's levels.

    • PF1 seedlings: One lot sold below valuations.

    • PDs: One lot sold at 5 USC below valuations.

    • D1s: Interest was seen below producers' reserve prices (likely to sell post-auction).

    • Offgrade fannings and dust: Good demand at steady to dearer rates.

  • Weather & Crop:

    • Good rainfall was recorded in Mulanje and Thyolo, with more expected in the coming days.

    • Leaf quality is improving, with better color and cup quality exceeding seasonal expectations.

    • Crop intakes are picking up steadily.

  • Market Outlook: Remains steady with continued interest for quality teas.

Other African Markets

• Uganda: Improved demand, brighter liquoring teas traded firm, while others remained slightly easier.

• Tanzania: Improved demand with rising auction volumes.

• Rwanda: Weaker demand for brokens, but other grades met selective demand.

• Burundi: Limited availability, with steady to firm demand.

Asian Markets

Sri Lanka – Strong Demand Despite Market Uncertainty

• Colombo Auction:

  • Offerings & Prices: The market remained strong, despite reports of lower production.

  • Grade Trends:

    • Ex-Estate:

      • Best BOPs gained 5 USC, while others remained firm.

      • Better BOPFs gained 3-10 USC, with bottom types strengthening by 10 USC.

      • Nuwara Eliya BOPs declined 20 USC, and BOPFs fell 60 USC.

      • Uva BOPs and BOPFs were irregularly lower by 3 USC.

    • CTC:

      • Low-grown PF1s remained firm.

      • BP1s sold at irregular levels.

      • High-grown & medium PF1s gained 4-6 USC.

    • Medium Grown:

      • OP1s gained 20 USC.

      • Best BOP1s gained 15 USC, while others fell 10-15 USC.

      • FBOPs remained firm, while others gained 20 USC.

      • FF1s strengthened by 20 USC, while others held firm.

      • OP/OPAs were dearer by 10-20 USC.

    • Low Grown Leafy:

      • OP1s eased by 15-30 USC, while poorer types strengthened by 10-20 USC.

      • Better BOP1s gained 15 USC, while others eased by 10 USC.

      • OP/OPAs were dearer by 3-6 USC.

      • PEK1s and PEKs saw mixed trends, with gains of 10-15 USC.

    • Premium & Small Leaf:

      • FBOPs were firm to dearer by 8-10 USC, but later declined by 16 USC.

      • FF1s remained firm.

      • BOP/BOPFs shed 8-10 USC.

    • Off Grades:

      • FGS1s gained 3-6 USC.

      • BMs strengthened by 10-12 USC.

      • BPs were dearer by 10-15 USC.

      • BOP1As gained 5-10 USC.

    • Dusts:

      • High-grown dusts gained 8-12 USC.

      • Secondary dusts strengthened by 12-20 USC.

      • Low-grown better teas gained 15-20 USC.

India – Limited Demand

• North & South India:

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

  • Poorly made teas and brokens traded easier.

  • CTC demand was slightly weaker, with finer grades holding steady.

  • Weather conditions remain uncertain, with showers impacting seasonal tea quality.

  • The market remains dependent on weather fluctuations in the coming weeks.

Indonesia – Improved Demand

• Jakarta Auction:

  • Offerings & Prices: 7,460 packages were offered, with 14% unsold.

  • Market Trends:

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

    • Exporters dominated sales, while local packers were less active.

  • Market Outlook:

    • Next auction will be held on an unusual Thursday due to public holidays.

Global Outlook

• Supply & Demand:

  • Steady interest in quality teas is supporting pricing.

  • Bulk grades remain under pressure, with selective interest.

• Pricing Trends:

  • Quality teas continue to command a premium, while other categories trade steady to easier.

• Shipping & Logistics:

  • Freight costs remain stable, but container shortages persist.

The tea market remains strong across key regions, with improved demand for quality teas. As the season progresses, market fluctuations will be driven by weather conditions and shipping challenges.