Moderate volume sales at firm prices during Sial Shanghai

The tug-of-war between exporters and importers has been intense during the Sial fair taking place from Monday to Wednesday this week in Shanghai. According to sources consulted by the World Beef Report (WBR), traded volumes have been low, but prices held firm compared to last week, despite Chinese importers initially pushing hard to lower prices by around US$ 300/400 per ton.

A trader and a Brazilian exporter confirmed from China late yesterday that forequarter (8-cut) was sold at US$/t 5,600–5,650, above importers’ initial aim to bring prices down to around US$/t 5,300. Not all buyers are accepting those levels, as they are selling the product in the spot market around US$/t 5,300. Those who are buying believe prices will recover by the time these shipments arrive, in about 3–4 months. Still, these are lower than the peak of over US$ 6,000 reached in early April, when tariff war tensions between China and the US were at their highest.

Sales focused mainly on forequarters. A Brazilian exporter said they had not sold shin & shank during the fair, while a trader noted “there is not much demand for butt cuts,” quoting prices around US$/t 6,400. Sales of flank 90 VL were reported at US$/t 4,500–4,600, in line with previous references.

Sources from Uruguay also confirmed very limited activity, with just a few isolated deals such as the sale of flat at US$/t 6,500 — US$ 300 below mid-April levels. Offers of US$/t 5,400 for shin & shank were flatly rejected by exporters, due to high livestock prices, as is also the case in Argentina.

As a result, exporters from Argentina and Uruguay are considering reducing the share of lower-value products — where they compete with Brazil — and shifting focus to higher-quality items, such as grainfed beef from animals finished for 100 to 200 days. “Interest in this product is growing,” said an Argentine trader.

From Chile, sales of bone-in cow quarters were reported at US$/t 4,650 on Monday during the fair, but prices were harder to achieve on Tuesday.

A Bolivian exporter said that standard shipments to China consist of 21 cuts sold at around US$/t 5,700. However, Bolivia's exports are currently limited by a government decision aimed at reducing domestic prices.