Velvet Market Update | Issue 173

Dec 3, 2021

Velvet prices strong

Velvet prices continued to strengthen in November with some reports of around 15% up on last year. According to some exporters, there are good sales to our key markets of Korea and China – led by both increasing consumer demand for NZ velvet and an increasing wholesale demand.

With the main harvest nearing completion, the velvet supply chain in NZ is chokka. Dalian Port is currently closed due to a Covid-19 outbreak – and it’s the only port that velvet can currently be imported into in China.

Covid-19 impacts

Screenshot of Covid-19 situation in China, as at 29 Nov. Dalian is located in the dark orange – signifying higher infection risk

As our key markets head into the winter period, concerns turn to increasing Covid cases.

In China, where elimination still appears to be the goal, Dalian Port was closed due to a Covid-19 outbreak in the city. Planned shipments have been cancelled by shipping companies and re-booking container space won't be easy once the situation is back under control (hopefully shortly, as no new cases have been reported in the last few days). It is imperative that you talk to your buyer so they can plan their exports. As Dalian is China’s main port for importing frozen food products it remains a high risk and further closures could happen during the season.

In Korea, a new Covid-19 wave is hitting (despite having a high vaccination rate). Daily cases have increased to around 4,000 from 2,000 just a couple of weeks ago. New public control measures are being considered by the Government to attempt to reduce the numbers.


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