China Onion Price on April 2025: Market Analysis on April 1, 2025

China Onion Price on April 1, 2025: Declining Prices Amid Rising Supply

Latest Onion Prices (April 1, 2025)

The latest onion prices from major production areas in China (converted to USD and EUR, assuming exchange rates of 1 USD ≈ 7.2 CNY and 1 EUR ≈ 7.8 CNY):

Market Analysis: Onion Prices Continue to Decline

1. Factors Behind the Price Drop

• Increase in Supply: Yunnan, China’s first new-season onion producing region, has expanded planting area by 18.18% year-over-year. Additionally, higher yields have led to an expected 25% increase in total production.

• Weak Market Demand: At the beginning of February, the price of new onions started at 2.40 CNY/kg, but by the end of the month, it had plummeted to 1.20 CNY/kg, a 50% decline.

• Wholesale Market Variability: Current wholesale prices vary from 3.0 to 3.6 CNY/kg, reflecting weak price momentum across different regions.

2. Future Outlook: Continued Downward Pressure

• Historical Trends: Over the past five years, onion prices in Yunnan have shown an inverse correlation with planting area—as supply increases, prices tend to fall.

• Seasonal Influence: The onion price index typically starts declining in March and continues to fall from April to June due to increasing supply.

• Market Forecast: Given higher supply levels and sluggish demand, prices are likely to remain under downward pressure unless weather disruptions reduce yields or export demand surges unexpectedly.

Conclusion: The onion market in China is currently experiencing a supply glut, leading to continued price declines. Unless significant external factors such as weather events or unexpected export growth intervene, the downward price trend is likely to persist in the coming months. Traders should closely monitor supply chain movements and market demand shifts to make well-informed decisions.

(Disclaimer: This analysis represents personal market observations and does not constitute investment or procurement advice.)