This example from Van der Does would appear to lend support to the claims from China that low SO2 ginger flakes would currently be around USD3,500/tonne. Van der Does said: “Last week we traded USD3,450 per tonne c&f Europe, prompt shipment, for Chinese split ginger of low SO2.”
However, on November 16, Marco Van der Does of AVS Spice Brokers was able to give an up to date price reference on Chinese split dried ginger of low SO2 levels. Similarly, Coutts said the last price he had heard of from China was at USD4,500/tonne c&f for low SO2 dried flakes. One UK trader recalled that on October 28 he had seen offers on low SO2 Chinese air dried ginger flakes at USD4,600 per tonne c&f Europe. He explained further that premium quality ginger flake of low SO2 on a c&f Felixstowe basis would be around USD3,500/tonne. Modern production lines use hot steam to dry the goods and this can avoid the SO2 problem.”
Zhu added: “Old production lines cause high SO2 because burning coal fire wind goes to the product directly. He confirmed that both these price quotes were for product of low sulphur dioxide (SO2). Zhu indicated dried ginger flake prices of USD2,700 per tonne fob Lianyungang and ginger powder at USD3,000/tonne fob Lianyungang. Finally, the large factories normally have advanced facilities, depreciation is high and administration fees are also lofty. Moreover, Chinese tightened environmental policy has resulted in the closure of lots of small factories and big factories have invested heavily in pollution water treatment, which has caused production costs to increase. In addition, labour costs have become increasingly high each year. Fresh ginger has a quite high moisture level, so 1 kg of dried ginger flake is made from 18-20 kg of fresh ginger. “Fresh ginger is quite cheap this year,” he said, citing prices equating to about GBP0.10 (USD0.15) per kilo.Ĭontrasting with this, dried ginger is not cheap this year, according to Zhu. Ting Zhu of Lianyungang Yuda Food Company said his firm had purchased 500 tonnes of fresh ginger from the market in Shandong Province.
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