Market Report – Week 51 (19 December 2024)

Global Tea Market Overview

African Markets

Kenya – Improved General Demand

• Mombasa Auction:

  • Offerings & Prices: 178k packages (12.1 million kgs) were offered, with 24% (42k packages) remaining unsold. The average auction price increased by 1 USC to close at USD 2.09/kg.

  • Grade Trends:

    • BP1s: KTDA EoR BP1s met strong demand, selling firm to dearer levels, with some marks gaining significantly. Below-best grades also experienced improved demand. Rwanda BP1s were notably dearer, especially for flavoury types.

    • PF1s: All KTDA EoR PF1s sold firm to dearer, with strong demand from Pakistan packers, Afghan buyers, and UK traders. KTDA WoR PF1s also sold firm to dearer. Medium PF1s gained 10-15 USC, while plainer types were in strong demand.

    • Dust Grades: Best PDs sold firm to dearer, while the balance remained steady. D1s met irregular demand, selling steady to slightly easier. Medium and plainer PD/D1s found improved support from Egyptian packers, UK, and Pakistan.

  • Active Markets:

    • Pakistan, Afghanistan, and Kazakhstan remained dominant buyers.

    • UK, Egyptian packers, and Sudan were active, while Yemen slowed.

    • Russia and CIS demand remained steady.

  • Weather & Crop:

    • Heavy rainfall was reported across major tea-growing regions.

    • Temperatures increased during the day and cooled at night.

    • Crop harvest was stable in EoR, but WoR recorded a slight drop.

  • Market Outlook:

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

    • Market direction in the new year will depend on KTDA’s strategy for unsold teas.

Malawi – Improved Demand

• Blantyre Auction:

  • Offerings & Prices: 3,040 packages were offered, with steady to dearer demand.

  • Grade Trends:

    • BP1s saw strong demand at steady rates.

    • PF1s gained 2 USC. PF1 seedlings held steady.

    • PDs were neglected, while D1s maintained strong demand at steady levels.

    • Poor-leaf off-grade fannings saw continued demand at last week’s prices.

  • Weather & Crop:

    • Hot and dry conditions dominated, except for cold, windy weather due to Tropical Cyclone Chido.

    • Crop intakes continued to increase seasonally.

Other African Markets

• Uganda: Demand improved, particularly for brighter liquoring teas, with firm to slightly dearer prices.

• Tanzania: Selective demand due to small volumes.

• Rwanda: Market recovered, with strong demand for quality teas.

• Burundi: Limited availability, with selective demand at firm levels.

Asian Markets

Sri Lanka – Weaker Demand

• Colombo Auction:

  • Offerings & Prices: 5.81 million kgs were offered, with a bearish market trend.

  • Grade Trends:

    • Ex-Estate: BOPs shed 15-20 USC, BOPFs declined 5-10 USC, while Uva BOPs eased by 20 USC.

    • CTC: Low-grown PF1s lost 10 USC, while BP1s and high/medium PF1s shed 10 USC.

    • Medium Grown: Better OP1s remained firm, while others gained 8-10 USC. BOP1s lost 10-15 USC. FBOPs and FF1s weakened by 15-20 USC.

    • Leafy Teas: OP1s lost 60 USC, while other grades declined by 10-15 USC. BOP1s and OPAs were also lower.

    • Premiums & Small Leaf: Select best FBOPs lost 10-15 USC, while others held firm.

    • Dusts: High-grown dusts fell 25-35 USC, while secondary and low-grown dusts weakened.

  • Market Outlook:

    • Interest for better-quality teas remained steady, but overall demand weakened.

    • Seasonal holidays impacted sales, and demand is expected to pick up in early 2025.

India – Steady Demand

• North & South India:

  • Offerings & Prices: 9,648 packages were offered, with 25% unsold.

  • Grade Trends:

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

    • Some medium-grown dust and BT/CTC fannings traded easier.

  • Market Outlook:

    • Weather remained cloudy with daily rain.

    • Seasonal fluctuations expected, with strong demand projected for January.

Indonesia – Fair Demand

• Jakarta Auction:

  • Market Trends:

    • Demand increased for green teas and certain black CTC grades.

  • Weather Impact:

    • Night temperatures dropped below 10°C, while daytime remained warm and sunny.

Vietnam – Active Demand

• Market Conditions:

  • Sales continued despite difficult harvesting conditions.

  • Limited plucking due to wet weather, but factories were managing existing stocks.

Global Outlook

• Supply & Demand:

  • Holiday season slowed transactions, but demand remained steady for high-quality teas.

  • Post-holiday markets are expected to strengthen.

• Pricing Trends:

  • Premium teas continue to command firm prices, while lower grades faced corrections.

• Shipping & Logistics:

  • Container shortages and transit delays continue to affect supply chains.

As the tea market wraps up 2024, strong demand is expected to return in early 2025, with weather conditions and supply availability shaping the market outlook.