Prices of Desiccated Coconut have reached unprecedented highs both at origin and spot in UK and Europe.
Main reasons for this are as follows:
- Freight has increased from between $ 200 – 230 per mt for 40 ft. containers and between $ 180 – $ 200 per mt for 20 ft. containers. Moreover, it has been very difficult to get hold of containers, especially 40 ft. as Shipping lines have
withdrawn capacity and are operating at between 60 -75% of pre- covid capacities.
- The Philippines suffered 4 typhoons between early November and early December resulting in severe crop damage and displacement of population. Leading exporters withdrew from the market for a period of time.
- Coconut Oil prices have continued to increase and this has a complementary impact on the price of DC since raw nuts tend to fetch better prices to the farmers from the oil extractors as opposed to the DC processors.
- Sharp demand increases in the Asian economies, particularly China has also had an impact on both freight and Raw Material prices.
It is believed that the freight impact will continue till well after Chinese New Year celebrations (Feb/March 2021). So we do not see much relief in pricing at least until Q2 of 2021.
UK and European spot markets have seen shortages in premium quality material. UK port congestions caused partly due to Covid but moistly due to Brexit preparations.
Spot prices of Desiccated Coconut in UK and Europe is between £ 2000 – 2150 (€2200-2365) per mt on Exstore or FCA warehouse basis. These are currently better than the prices from origin which are between $ 2800 – 2925 per mt on C&F basis but not held firm for more than an hour or so because of the uncertainty of getting freight. In fact many shippers are offering on FOB basis and indicating freight to their customers in case they would like the supplier to fix it.
Please contact us for firm offers on both spot and shipment basis on +44 (0) 1483 662013 or [email protected]