The Chinese market and some countries are attracted by Vietnamese pangasius products because of their good prices. Pangasius exports in March and April 2023 are expected to increase gradually compared to the first months of the year.

According to Ms. Le Hang, communications director of the Vietnam Association of Seafood Exporters and Producers (VASEP), in the picture of seafood export in February 2023 with US $ 610 million, pangasius contributed nearly 26% of the value equal to $156 million. Compared to the same period, although pangasius exports are 9% lower, but in the context of inflation that reduces demand and lowers import prices, sales in February are a positive sign.

In particular, there are many markets with a sharp increase in pangasius imports in the past month. In which, the largest market, China, increased by 26%, reflecting the inevitable trend of the market after the removal of the zero Covid policy. By the end of February, pangasius exports to China reached nearly US $ 73 million, down 8% over the same period in 2022, due to a sharp drop in turnover in January and December.

China imports pangasius into 23 provinces of the country. The top five localities that import the most pangasius from Vietnam are Guangdong (accounting for 30%), Shandong and Shanghai both accounted for 12%, Tianjin and Zhanjiang both accounted for 10%.

In 2022, China imported over 253,000 tons of pangasius from Vietnam, up 71% compared to 2021. The average price of importing pangasius into the market reached 2.4 USD/kg, up 25%. In which, the highest import prices are in Guangdong, Hubei and Anhui, reaching US $ 2.6 - 2.7 /kg.

In addition to China, pangasius exports to many other markets in February had a double-digit growth such as the UK increased by 79%, Colombia increased by 38%, Germany increased by 84%, Singapore increased by 60%, and Belgium increased by 90%.

There are a number of markets that have experienced triple-digit breakthrough growth, such as Saudi Arabia up 110%, Portugal up 228%, and Iraq 322%.

Although pangasius exports have improved, especially from the EU and China, it may be until the second quarter of this year that export volumes return to normal.

Analysis by Vietcombank Securities Company for Nam Viet Seafood Company shows that the demand for pangasius will increase again from the third quarter of 2023, and China's opening and more stable will boost export orders of pangasius enterprises. Since the end of 2022, Nam Viet is promoting pangasius exports to the Chinese market.

In addition to exporting to Shanghai as before, Nam Viet has found some new partners in Beijing and Guangzhou. According to the plan, export volume in the Chinese market will grow by 35-45%.

Ocean freight to the main EU ports have dropped significantly, returning to pre-pandemic levels. Pangasius prices and raw fish prices are also higher than before. The price of frozen fish fillets supplied to some EU importers, delivered by net weight also increased to US $ 3/kg.

Trade between Vietnam and the EU has become easier. Although pangasius is an essential and affordable commodity it seems that exports to Europe reach the saturation threshold.

On the Chinese side, the reopening makes travel and trade smooth. This gives great hope of a demand recovery not only in this market but also in other markets around the world.

The opposite trend is that exports are falling in many important markets such as the US down 59%, Brazil down 23%, Thailand down 29%, and Mexico down 11%.

Therefore, the cumulative export of pangasius in the first two months of the year still grew by 38% and recorded sales of US $ 240 million. In which, only a few markets in the UK, Germany, Singapore and Portugal maintained a positive growth rate of 6-81%. In which, Germany is showing the most positive signal, accounting for 2.6% of pangasius exports, compared to the proportion of 0.9% in the same period last year.

Pangasius exports are mainly expected to China, some European countries such as the UK, Germany, Portugal and the Middle East markets. However, exports will not be able to make a strong breakthrough. In the coming months, import demand may increase compared to the beginning of the year, thanks to trade and promotion programs such as fairs and conferences that will promote exports, but export prices will not be as high as in 2022.

According to VASEP, “The demand of markets tends to gradually recover, especially the Chinese market and many other small markets. The source of pangasius materials will also increase in the next month, so exports in March and April will increase gradually compared to the first months of the year.

Source: Customs News