Market Review of Coconut Fiber
November 2023
Until the third quarter of 2023, the coir fiber market experienced a prolonged period of low prices, following a decline observed in the preceding year. Notably, in Indonesia, the coir fiber price remained at US$90 per metric ton until July 2023, gradually increasing to US$110 per metric ton by October 2023. Similarly, Sri Lanka witnessed a weak coir fiber market, with an average price of USD49 per metric ton during January-October 2023. This figure represented a 40% decrease compared to the average price recorded in the same period of 2022.
A significant contributing factor to this price decline was the industry's heavy reliance on the Chinese market for raw materials. The slowdown of the Chinese economy resulted in a substantial reduction in demand, thereby exerting downward pressure on prices and leading to the prevalence of deep discounts in the market.
Despite the challenges faced by the coir market since 2022, major exporters such as India, Indonesia, and Sri Lanka continued to play a pivotal role in the global coir-based products trade. According to the latest report from the Ministry of Commerce and Industry of India, total coir and coir product exports amounted to 831.8 thousand tons during the first three quarters of 2023, a marginal 0.5% decrease in volume compared to the same period in 2022, generating an export revenue of US$238.78 million. Coir pith and fiber remained the primary products, accounting for over 98% of the total volume and contributing 83% of the export revenue. Key export destinations for Indian coir products included China, European countries, and the USA, collectively covering more than 85% of global demand.
In Indonesia, the export volume of coir-based products during January-September 2023 amounted to 20,249 metric tons, indicating a 12% decrease compared to the previous year's volume for the same period. The decline in volume was accompanied by a 25% decrease in export value, reflecting the lower prices of the products. Major export destinations for Indonesian coir products included China, South Korea, and Australia, accounting for more than 95% of the exported coir products. Coir fiber and coir pith constituted the primary products sent from Indonesia to the global market.
Similarly, Sri Lanka experienced a decline in export revenue for coir-based products until the third quarter of 2023. The export revenue dropped by 11%, decreasing from US$180 million in January-September 2022 to US$161 million in the same period of 2023. Moulded coir products utilized in horticulture were the largest contributor to the country's export revenue from coir-based products, amounting to US$118 million, representing over 74% of the total export value. However, the export value of moulded coir products witnessed a 9% decrease compared to the previous year. Other products that significantly contributed to export earnings included mattress fiber, Coir Brooms & Brushes, and coir twine. Primary export destinations for moulded coir products for horticulture from Sri Lanka included Mexico, China, Japan, Morocco, the USA, South Korea, and Turkey.
