The Mintec EU SMP price is up 4% m-o-m in May, as prices continue to climb since October 2018. EU exports have been driving price rises with January-March exports growing 35% y-o-y.
Increased exports to South-East Asian markets in the first quarter of 2019 have significantly contributed to the price boost. For dairy products generally, EU exports to South-East Asia between January and March 2019 rose 63%, y-oy, in volume. For SMP in particular, over 90,000 tonnes were exported in March, representing a 32% y-o-y growth. This growth can be largely attributed to Indonesia, which tripled its purchases to 11,500 tonnes in March, a 226% y-o-y growth. Exports to China and the Philippines also grew considerably.
Demand from within the EU is also reported as healthy, with contracting activity high in May. The result of this contracting activity has been that the majority of Q2 production has been sold already, leaving spot market availability tight.