After reaching a two-year high in June 2024, Vietnam’s whiteleg shrimp exports continued to increase in July. Rising sea freight costs are believed to be dampening demand; however, some buyers are still ramping up orders due to concerns about further price increases. From 30,452 tons exported in June, Vietnam’s whiteleg shrimp exports increased to 32,831 tons in July, the highest level since the beginning of the year.
Except for slight declines in exports to China, Hong Kong (-4%), and the EU (-6%), July saw growth in major markets such as the US (+23%), Japan (+1%), South Korea (+15%), and the UK (+15%).
The US is the largest market for Vietnam’s whiteleg shrimp. Exports to the US have increased for the fourth consecutive month, and export prices to the US have also been rising continuously since February of this year.
In the US market, Vietnam’s whiteleg shrimp may seize opportunities compared to competitors, as shrimp from Ecuador and India are facing warnings related to labor issues and food safety. US shrimp demand is expected to slightly increase in the third quarter, and prices are anticipated to rise from July onwards due to increased purchasing from importers ahead of the year-end holiday season.
In the second quarter of 2024, the volume of whiteleg shrimp exports improved, while selling prices showed little improvement. However, the average export price of all whiteleg shrimp products sold to every market remained steady at $8.10 per kilogram.
Consumption of whiteleg shrimp in the markets is expected to improve as the peak holiday season approaches. Cooling inflation is helping to boost consumption. Export prices of whiteleg shrimp to the Japanese market are also expected to rise, as Vietnam’s value-added, ready-to-eat products remain popular, transportation costs are lower, and the yen is likely to appreciate.
In July 2024, Vietnam’s whiteleg shrimp sales to China remained strong, only slightly decreasing to 5,700 tons. However, prices fell by 4.6% to $6.20 per kilogram, the lowest level since some volatile months in 2022.
In July 2024, the EU imported 4,417 tons of Vietnamese whiteleg shrimp, marking three consecutive months of high levels compared to the last months of 2023 and the early months of 2024. Export prices increased by 1.4% to $7.10 per kilogram, but they remain low compared to the pre-COVID months.
In Japan, volumes remained stable in July at 3,655 tons. Prices fell by 3.4%, returning to the March-to-May range, reaching $8.50 per kilogram. Meanwhile, in South Korea, prices remained stable at $7.10 per kilogram, while volumes increased to 3,336 tons, a level not seen since August 2023.
VFM
