Mixed price movements reported on European SMP market

December 2, 2022

2 mins read

The European SMP market sentiment was reported slightly bearish during the week, with prices declining marginally compared to the week prior. Limited market activity was reported across the European Union, which was the key driver behind the declining prices. In contrast, product availability remains good, according to market sources. It is expected that traders will be willing to reduce prices further in the coming weeks to generate cash flow. However, manufacturers are looking to build up small stocks , as current market prices become profitable. Increasing numbers of manufacturers across Europe have been renting additional storage capacities for the coming two quarters, indicating that they expect to see international buying interest return in early Q2 2023.

However, with news on 1st December that the Chinese government is considering easing its zero-Covid policy, the European SMP market reacted nervously, as together with the announcement by the Chinese government multiple market sources have reported that Chinese buyers have begun monitoring the European milk powder market closely again, since 30th November.

For reference, the MBP for Skimmed Milk Powder EXW Europe [Mintec Code: J117] was assessed at €2,850/mt on 1st December, down €50/mt on the week.

Market sentiment for UK SMP turned neutral, as prices remained unchanged during this week’s assessment period. Market activity in general is limited, as buyers remain off the market, anticipating further price declines during the coming weeks. Producers remain unwilling to reduce prices, as not-in-contract committed stock levels stay limited. 

The MBP for Skimmed Milk Powder EXW United Kingdom [Mintec Code: JS43] was assessed at £2,500/mt on 1st December, unchanged compared to the previous week.




Topics: Dairy & Eggs
Sandro Schulz
Sandro Schulz
EMEA Protein Team Lead

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