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China pressures to load; demand remains firm
Source: | Author:Rafael Tardaguila | Published time: 2020-11-27 | 773 Views | Share:

Chinese importers are pressuring to load as soon as possible so that the merchandise may arrive in time for the New Year's sale. "There are problems in getting available containers as all the units are trying to ship beef at the same time," a regional trader explained to WBR.

The source indicated that demand remains firm, with round sales from Uruguay at US$ 5,050 CFR, eye round at US$ 5,850 and shin & shank at US$ 5,800. He also mentioned that interest continues for bone-in cow quarters at US$ 3,450-3,500 CFR.

Another operator indicated that there is still a decent demand despite the fact that little by little less interest is beginning to be noticed. "They are now more cautious because prices in the Chinese domestic market are falling and there is a lot of supply from South America," he said. The source considered that it gives the impression that at some time during the second half of November demand will dwindle.

In contrast, an industrialist in the region was more optimistic about its performance. He assured that China is still fluent with some punctual customers pressuring to pay something less. "We are confident that until December China will operate on a regular basis," he projected.

A trader handled sales from Uruguay including brisket and navel plate at US$ 3,100, outside flat and knuckle at US$ 5,200 and rib plate at US$ 3,900 CFR.

From Argentina, sales include knuckle, outside flat and inside cap off at US$ 5,100, bone-in rib plate at US$ 3,800 and boneless at US$ 4,500.

On the other hand, a trader assured that demand of sheepmeat from Uruguay remains firm even for loads in December, with a 9-24 kg lamb at US$ 4,950-5,000.

 

Mercosur grows as a supplier to China

 

The participation of South American production, mainly of the Mercosur bloc, in the market of imported beef in China continues to grow.

In October this region exported 143 thousand tons — estimating 45 thousand tons from Argentina—, 13 thousand more than in September. For their part, the two suppliers from Oceania (Australia and New Zealand) increased their shipments to China by less than a thousand tons to 21,417 tons shipment weight.

Compared to October last year, exports from Mercosur grew 5% (6,565 tons) while those from Oceania fell 52%, a decrease of 23 thousand tons.