Editor: Andrés Oyhenard
andres@tardaguila.com.uy
China’s beef market continues to show very limited trading activity and, so far, none of the recovery signals that some operators had expected following the anticipated exhaustion of import quotas from key suppliers have materialized.
“We have submitted many offers to Chinese importers and received zero bids. Everything feels very strange,” a regional broker told World Beef Report (WBR). The source added that even large Brazilian processors are concerned about the difficulty of redirecting volumes to alternative markets such as the US or Canada.
Price indications remain under pressure. A Uruguayan exporter reported bids of US$/t 7,000 CFR for outside flat, US$/t 7,500 CFR for eye round, US$/t 7,200 CFR for topside, and US$/t 7,500 CFR for shin & shank.
Meanwhile, another Uruguayan exporter noted that the so-called gray channel through Hong Kong remained largely blocked during the past week, affecting offal placements.
An Argentine trader was even more blunt. “China is dead, it’s a disaster,” he said. According to the source, even bone prices are moving lower, contrary to expectations expressed during the recent SIAL exhibition that the market would recover once Brazil reduced its sales.
The trader said inventories remain high, while Argentine supply is limited as the empty-cow slaughter season comes to an end. His price indications for China were US$/t 7,300-7,400 CFR for rounds and US$/t 7,800 CFR for shin & shank.
Another regional broker shared the same assessment. “China is flat. There is very little interest from Chinese buyers,” he said. In his view, many importers are waiting for greater clarity regarding Brazil’s quota situation before returning to the market.
He also highlighted growing concerns over financial risk. “There is a lot of concern about payments and advance financing, especially for Argentina. In Brazil, commission agents are also becoming more cautious with Chinese clients because of the risk issue,” he said.
