Image: Stockfile FIS

Shrimp Exports Likely to Continue Growing in Q2 2024

VIET NAM
Friday, June 14, 2024, 07:00 (GMT + 9)

As of May 15, 2024, Vietnam's shrimp exports reached 1.1 billion USD, up 8.3% over the same period last year. By the end of the second quarter of this year, shrimp exports can continue to maintain growth momentum when inventories are reduced, export prices are more positive, and demand is more positive from main markets.

As of May 15, 2024, Vietnamese shrimp exports to the EU reached 134 million USD, up 1.2% over the same period. Although the cumulative figure from the beginning of the year only increased slightly, shrimp exports to this market have tended to increase well in recent months. As of May 15, 2024, shrimp exports to Japan reached 161 million USD, a slight decrease of 3% over the same period. The Japanese market also has a similar trend to the EU market. The accumulated export value from the beginning of the year decreased slightly but has shown signs of increasing since April.

Source: Stockfile FIS

Orders from the EU and Japan are expected to increase in the second quarter of this year. Especially in the EU market, there are signs of increased demand, especially for certified shrimp products. Demand from Japan is also quite positive, but orders are slower due to the devaluation of the yen and Golden Week.

Source: Stockfile FIS -->

As of May 15, 2024, Vietnamese shrimp exports to China & Hong Kong reached 223 million USD, an increase of 31%. Although the cumulative number to China & HK markets increased, exports to this market have shown signs of decreasing in recent months. It is expected that shrimp exports to this market in the second quarter will hardly grow strongly. The reason is that China's demand for frozen shrimp slows down. In this market, Vietnam also has to compete strongly with Ecuador. Starting from May 1, 2024, China reduces import tax to 0% for Ecuadorian shrimp under the bilateral Free Trade Agreement. In addition, shrimp suppliers to China also face strong competition from increased domestic shrimp production, putting pressure on imported shrimp prices.

Most large processing factories exporting to China and HK markets have had to adjust raw material prices by 1-3%.

The US is still a positive whiteleg shrimp consumption market

Source: Vasep

Meanwhile, CVD tax may affect Vietnamese shrimp exports to the US. As of April this year, the US is still a positive market for whiteleg shrimp consumption of Vietnam. In March 2024, the US was the only market that saw the average export price of frozen whiteleg shrimp increase and in April, the price increased slightly by 1% to 9.80 USD/kg. The volume of US whiteleg shrimp imports from Vietnam in April this year remained stable at 4,168 tons, higher than other markets.

<-- Source: Stockfile FIS

China's whiteleg shrimp import volume decreased slightly to 3,399 tons in April 2024 - the lowest monthly volume since March 2023.

The average export price of frozen whiteleg shrimp to China remains stable at 6.40 USD/kg, the lowest level since the beginning of 2023, but higher than the price of 2021 and 2022.

In April 2024, whiteleg shrimp exports to the EU reached 3,366 tons - the highest level since August 2023. The average export price of frozen whiteleg shrimp increased after decreasing 1.4% to 7.40 USD/kg in March.

In April this year, the average export price of frozen whiteleg shrimp to Japan decreased by 1.2% to reach 8.50 USD/kg. Export prices to Korea increased by 4.1% to 7.40 USD/kg.

Source: Vasep

The average export price of frozen black tiger shrimp to China decreased, while the export price to the US was stable

China's imports of black tiger shrimp from Vietnam increased, reaching the highest level from October 2023 with 922 tons, but the average export price of frozen black tiger shrimp to this market decreased in April, down 11.2% to reach 9.2%. 50 USD/kg.

Source: Stockfile FIS -->

Meanwhile, the volume of US black tiger shrimp imports from Vietnam decreased, reaching 178 tons, but the price remained stable at 18.80 USD/kg - the highest level in a year.

Vietnam's shrimp exports continue to face many challenges such as falling export prices, strong competitive pressure from rival suppliers, sharp increases in transportation costs and input prices, geopolitical conflicts, and economic recession. world economy. Shrimp export enterprises have been trying to map out strategies for development such as increasing quality and creating a difference for their products in the market. Besides, applying science and technology to both production and farming stages to increase efficiency and reduce product costs.

Author: Kim Thu | Vasep (Translated from the original in Vietnamese)

editorial@seafood.media
www.seafood.media

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