Market Report – Week 50 (12 December 2024)

Global Tea Market Overview

African Markets

Kenya – Fair General Demand

• Mombasa Auction:

  • Offerings & Prices: 195k packages (13.25 million kgs) were offered, with 29% remaining unsold, an increase from 22% last week. The average auction price declined by 5 USC to USD 2.08/kg.

  • Grade Trends:

    • BP1s: KTDA EoR BP1s met improved demand but traded irregularly steady to easier. KTDA WoR BP1s saw better absorption at firm to dearer levels.

    • PF1s: KTDA EoR PF1s held firm, while below-best types shed 4-10 USC. KTDA WoR PF1s traded steady to easier. Medium PF1s met improved demand, trading firm to dearer.

    • Dust Grades: Best PD and D1 types sold at firm to dearer levels, while plainer grades traded steady to easier.

  • Active Markets:

    • Pakistan remained the most active buyer, supported by Afghanistan and Yemen.

    • Bazar and UK were selective, while Egyptian packers and Sudan maintained interest.

    • CIS markets, including Kazakhstan and Russia, showed slower demand.

  • Weather & Crop:

    • Heavy rainfall was recorded across both sides of the Rift Valley.

    • Increased temperatures during the day and cooler nights supported steady crop intake.

  • Market Outlook:

    • A two-week holiday break is expected to slow activity.

    • The New Year is expected to bring healthy availability, though quality may be impacted by fluctuating weather.

    • The market direction will be influenced by how KTDA manages unsold teas.

Malawi – Less Demand

• Blantyre Auction:

  • Offerings & Prices: 3,220 packages were offered, with weaker demand at steady to easier levels.

  • Grade Trends:

    • BP1s saw fair demand but traded easier.

    • Secondary PF1s and seedlings met limited interest, with only one lot selling below valuation.

    • PD and D1s were neglected, while some off-grade fannings saw demand at easier rates.

  • Weather & Crop:

    • Hot and dry conditions continued.

    • Crop intake showed seasonal improvement.

Other African Markets

• Uganda: Maintained demand, particularly for brighter liquoring teas. Prices were steady to slightly easier, with PF1s tending firm to dearer.

• Tanzania: Reduced demand as auction volumes remained small.

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

• Burundi: Limited availability, with selective buying.

Asian Markets

Sri Lanka – Mixed Demand

• Colombo Auction:

  • Offerings & Prices: 6.16 million kgs were offered. While leafy teas gained interest, high-grown Rotovane teas faced a weaker market.

  • Grade Trends:

    • Ex-Estate: BOPs eased by USC 10-15, while BOPFs shed USC 15-18.

    • CTC: Low-grown PF1s gained USC 5-10, while BP1s were dearer by USC 20.

    • Medium Grown: OP1s remained firm, while BOP1s strengthened by USC 10.

    • Low Grown Leafy: OP1s and OPAs were mostly dearer by USC 10-20.

    • Premium & Small Leaf: FF1s were mixed, with better grades losing USC 10 while others gained USC 8-10.

    • Dusts: High-grown dusts remained firm, while secondary dusts gained USC 3-6.

• Market Outlook:

  • Demand remained stable for Orthodox teas, while CTC grades were slightly easier.

  • Holiday season purchases influenced the market, and sentiment is expected to shift after the New Year break.

India – Good Demand

• North & South India:

  • Offerings & Prices: 9,040 packages were offered, with 20% remaining unsold.

  • Grade Trends:

    • Java/Sumatra Orthodox and CTC teas traded steady to firm.

  • Market Outlook:

    • Next week marks the final sale of 2024, with 8,400 packages on offer.

    • The New Year break is expected to result in larger offerings for the first two sales of 2025.

  • Weather & Crop:

    • Heavy rainfall was observed across key growing regions, supporting crop recovery.

Indonesia – Fair Demand

• Jakarta Auction:

  • Market Trends:

    • The market is entering a dormant phase, with smaller pluckings before the season ends until April.

    • Stockpiles remain high, keeping prices relatively low.

  • Weather Impact:

    • Rainy and colder conditions are prevailing across the region.

Vietnam – Available Stock

• Market Conditions:

  • Factories are relying on existing stocks due to weather disruptions.

  • Production is expected to resume gradually with improving weather.

Global Outlook

• Supply & Demand:

  • The market is experiencing selective buying, with quality premiums still performing well.

  • Seasonal holidays are slowing transactions, but demand is expected to pick up in early 2025.

• Pricing Trends:

  • Quality teas continue to command firm prices, while bulk grades face corrections.

• Shipping & Logistics:

  • Delays and container shortages persist, particularly from East Africa and South Asia.

The tea market remains stable as the year-end approaches. Buyers are focusing on quality, and demand is expected to rebound in the first quarter of 2025.