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Vietnam cassia price status in Vietnam

Vietnam cassia price now has big change in Vietnam which is because of scarcity of raw material. This is affecting much on the cassia export. Where is the reason making price of cassia reach to the record price in the past few years?

Vietnam is one of biggest export countries of cassia in Vietnam. Cassia cultivation area is expanding annually meanwhile the yield is also rising. However, although cassia planting area and yield are both increasing, Vietnam cassia price has been stayed at a record for some past years.

Recent years, cassia export has been sped up, this helped many areas escape from poor situation by planting cassia. Cassia markets are also various and vast for all kinds of cassia from normal quality as split cassia, broken cassia to premium quality as cigarette cassia and stick cassia

For past few years, price of split cassia was quite stable and offered at 2000-2200 usd /mt at loading port. The prices were offered for some years. However, in the end of 2018, cassia had a big change in price and was offered at 2260 usd/mt at the loading port. Both exporters and importers expected prices to come down in the main crop 2019, starting in early March. However, price didn’t go down, but kept going up. Now main crop has come to an end, split cassia is now offered at 3000 usd/mt at the loading port. New crop of cassia is coming nearly and starts in August. But price is not expected much to come down, because this is the small crop.

There are some reasons leading to Vietnam cassia price staying at high level. However, the main reason is that farmers have harvested small yield in comparison what they have.

vietnam cassia price

This is explained that price of cassia leaves were not high as farmers expected so they just harvested a small yield. Just small material was brought out to the market, not enough to meet requirement of current demand, price was raised at so high level. Oil extraction factories have recently collected cassia leaves at low levels in the area. This made farmers not able to harvest the cassia they planned to harvest, causing in the scarcity of material. Moreover, big demand from India, Bangladesh, Yemen, EU, USA market has made cassia price become so high now.

According to the current market situation, cassia price will have no much chance to go down, because the crop in August 2019 can just meet a small demand of market.

As expected, cassia price will come down, but not much in early of 2020. This is because of the big shortage of cassia in early and end of 2019. As a result cassia importers have no much material stocked in their warehouse from the old crop of 2019. Because of this, Cassia material will be bought much by importers right in the beginning of crop of march 2020. This is the reason that cassia price will still stay at high level in 2020. However, we still can expect cassia price to go down in the middle and end of crop if the price of cassia leaves is bought at reasonable price that encourages farmers to harvest and bring out the market with a big quantity of material.