The Mintec EU SMP price gained 55% y-o-y and was up 4% m-o-m at the beginning of December as the EU intervention stocks have been cleared and the export demand has been strong. SMP prices from other main markets have been also increasing.
The European Commission has reported that as of September there were no SMP intervention stocks remaining, down from 100,000 tonnes in January 2019 and 280,151 tonnes in September 2018.
As for exports, between January and October, the EU exported 845,385 tonnes of SMP, a 26% y-o-y increase. The export growth was driven by rising exports to China (+47%) and Indonesia (+46%) while exports to the EU’s third major SMP market, Algeria, remains down 29% y-o-y.
EU export numbers have benefitted from the trade tensions between Mexico and the US. Between January and September, the EU exported 30,529 tonnes of SMP to Mexico, an increase from 2018’s 1,885 tonnes. Political instability in Algeria has continued to lead to slow demand for milk powder imports in 2019. Overall, exports have slowed in the second half of 2019.
EU production of SMP has reached 1.287 million tonnes in 2019 (January-October) a very slight increase of 0.4% y-o-y.