Pumpkin seed kernels: Illegal price fixing
October 25, 2016 at 2:02 PM ,
Der AUDITOR
Reality has returned, and exporters are so desperate that they will stop at nothing anymore. Not even criminal activities.
Could not meet the challenge
Anyone who was someone was at the SIAL last week. Exporters hoped for tremendous sales. The fair turned out to be an absolute disaster, though. The problem: The buying interest for pumpkin seed kernels is as low as ever. The reason: Most buyers have changed their recipes, and need significantly less pumpkin seed kernels. This poses quite a challenge for the Chinese. The booths could attract only few visitors, and too few contracts were concluded. Many an exporter even feared for his return ticket home.
Illegal price fixing
The exporters reacted quickly. They called a meeting with the objective of halting the price decline, and establishing normal prices again. Their solution was price fixing. The goal was to inject some momentum in the market with a uniform presence. This attempt, however, is currently back-firing with quite an impact. In light of the bad sales, the first exporters feel forced to stab their colleagues in the back, and offer their pumpkin seed kernels at markedly lower prices. Even if such actions provoke the displeasure of their colleagues. It is unlikely, in view of the ill-will and distrust on the market, that the exporters will be able to stop prices from declining further.
pumpkin seed kernels, China |
||
type |
Grade |
USD/mt |
GWS |
A |
2,090 |
GWS |
AA |
2,300 |
shine skin |
A |
1,960 |
shine skin |
AA |
2,300 |
CFR Hamburg |