Vietnamese pangasius export recovered in May 2013

Seven out of eight main pangasius importers of Vietnam increased their purchase value, including the U.S., ASEAN, Brazil, China and Hong Kong, Saudi Arabia, Mexico, Colombia. Only the EU got a drop in import. After four months of drop, pangasius exports to Mexico and Colombia soared up in May 2013 (121.8 percent for Mexico and 53.6 percent for Colombia), leading to a rise in earnings from these two markets in the first five months.

Russia was in the eight leading importers of Vietnamese pangasius between January and May 2012. But exports to Russia in January – May 2013 considerably stumbled causing a step back for the market that has fallen below Saudi Arabia. This period, exports to Saudi Arabia valued at US$23.26 million, up 11 percent from the compatible time of 2012.

Some companies said that decline of tilapia production in some provinces in China will create new opportunities for pangasius in freshwater fish importing markets in the coming time. Currently, sale of tilapia seedlings in several provinces in South China are running well below volumes of 2012. In Guangxi, sales of seedlings are down 30percent to 40percent; in Guangdong they are down 20percent to 30percent. Prolonged rainy and cold weather is disturbing the progress of the seedlings and tilapia production this year. Tilapia production is predicted to fall, as the international market for Chinese tilapia consumption is worrisome. In the first four months of 2013, U.S. imported 42,629 MT of tilapia from all sources, with a worth value of US$201.3 million, down 20 percent in volume and 21 percent in value over the corresponding period of 2012, mainly due to decline in purchase from China.

The EU market continued reducing fish purchase from Vietnam while the U.S. kept the uptrend in import and became the leading consumer of Vietnam pangasius in April and May 2013. Through May 2013, the U.S. was Vietnam’s largest pangasius importer, followed by the EU.

The U.S. accounted for 24 percent in Vietnam’s total earnings from pangasius exports. In January – May 2013, shipment to this destination reached US$170.18 million, up 16 percent over that of 2012. Exports were around US$56.9 million in May 2013, up 72 percent from May 2012 and just saw a drop in February and March. The higher antidumping tax imposed in POR8 could not curb the uptrend. Eight Vietnamese companies receiving the zero-percent duty rate are accelerating shipments of pangasius products to the U.S. In particular, the price of imported pangasius was unchanged in the U.S. market. In June 2013, frozen pangasius fillets 5-7 oz averagely cost was still at US$1.8 per pound, higher than US$1.7 per pound in the first months of the year.

The EU ranked second among pangasius importing countries with a value of US$159 million in January – May 2013, down 15.6 percent on that of 2012 representing 22.4 percent of Vietnam’s total export value. The EU market has still been on a quiet trend and is full of supply of some whitemeat fish species like cod, pushing down prices of cod and other whitemeat fish. A report by the European Commission in early May 2013 said that 17 economies in the euro zone are still falling into stagnation this year while 27 EU member countries will only get growth of 0.1 percent, down 0.3 percent compared to initial predictions. OECD says that the U.S. economy will reach growth of 1.9 percent in 2013 and 2.8 percent in 2014.