After hitting a two-year high in June 2024, Vietnam's whiteleg shrimp exports continued to increase in July.

Rising ocean freight rates are said to be dampening demand, although some buyers are still increasing their shipments due to concerns about further increases. Vietnam’s whiteleg shrimp exports increased from 30,452 tonnes in June to 32,831 tonnes in July, the highest level since the beginning of this year.

Except for a slight decrease in exports to China, Hong Kong (-4%) and the EU (-6%), July saw increases in major markets such as the US (+23%), Japan (+1%), South Korea (+15%) and the UK (+15%).

The US is the largest market for Vietnamese whiteleg shrimp. Exports to the US have increased for the fourth consecutive month. Export prices to the US have also increased continuously since February this year.

In the US market, Vietnamese whiteleg shrimp may have an opportunity to compete with its competitors as Ecuadorian and Indian shrimp are facing labor and food safety warnings. US shrimp demand is expected to increase slightly in Q3 and prices are expected to increase from July onwards due to increased purchasing power from importers ahead of the year-end holiday season.

In Q2/2024, whiteleg shrimp export volume improved while selling prices improved little. However, the average export price of all whiteleg shrimp products sold to all markets remained unchanged at USD 8.10/kg.

Whiteleg shrimp consumption in markets is expected to improve as the year-end holiday season approaches. Cooling inflation helps improve consumption.

The export price of white-leg shrimp to the Japanese market is also expected to increase because Vietnam's value-added and processed products are still popular, transportation costs are lower and the yen is likely to appreciate.

In July 2024, Vietnam’s whiteleg shrimp sales to China remained strong, falling only slightly to 5,700 tonnes. However, prices fell 4.6% to $6.20/kg, the lowest since several volatile months in 2022.

In July 2024, the EU imported 4,417 tonnes of Vietnamese whiteleg shrimp, marking three consecutive months of highs compared to the months of late 2023 and early 2024.

Export prices increased 1.4% to $7.10/kg, but remained low compared to pre-COVID months.

In Japan, volumes remained stable in July at 3,655 tonnes. Prices fell 3.4%, returning to March-May levels at $8.50/kg.

Meanwhile, in South Korea, prices were stable at $7.10/kg, while volumes increased to 3,336 tonnes - a level not seen since August 2023.

Source: VASEP