Industry News

China’s Spot Beef Market on May 8th

Recently participants in the imported beef spot market actively engaged in offering, while a small number of companies were influenced by low trading volume and prices, resulting in a slight decrease in their willingness to offer at higher prices. Spot prices showed a downward trend, with a mainstream decrease of 0.5 yuan/kg(0.07 US$/kg) for a few cuts compared to last Saturday, and some individual cuts like beef knuckles experienced a decline of 1 yuan/kg (0.14 US$/kg).

On May 8th participants in the imported beef spot market were actively involved in offering, while a few companies were slightly less willing to offer at higher prices due to factors such as low trading volume and significant bargaining by buyers. Overall, there was insufficient purchasing enthusiasm from the demand side, and market trading volume remained low. With no significant changes in the market's supply and demand fundamentals, spot prices continued to face considerable pressure. As a result, a few companies further lowered their offering prices today.

Mainstream prices for a few cuts, such as Brazilian brisket at 56.5 yuan/kg (8.16 US$/kg), Brazilian top sirloin cap off at 49 yuan/kg (7.07 US$/kg), Argentinean tenderloin at 48.5 yuan/kg (7.00 US$/kg), and Uruguayan beef loin 97VL at 49 yuan/kg (7.07 US$/kg), decreased by 0.5 yuan/kg (0.07 US$/kg) compared to last Saturday. Beef knuckles experienced a more noticeable decline. For example, Brazilian fore shank was quoted at 55-61 yuan/kg (7.94-8.81 US$/kg) last Saturday, with a mainstream price of 57.5 yuan/kg (8.30 US$/kg). On May 8th, prices dropped to 54-60 yuan/kg (7.80-8.67 US$/kg), with a mainstream decrease of 1 yuan/kg (0.14 US$/kg) to 56.5 yuan/kg (8.16 US$/kg).

Due to factors such as prices approaching or falling below the cost line and the continuous downward trend not stimulating an increase in trading volume, most companies had a relatively low willingness to further lower their offering prices, resulting in a stabilization of prices for most cuts.