Price fluctuation refers to a situation where the import price in the destination country (e.g., CIF price to Vietnam) is high, while the selling price in the import market is low — leading to losses.
Why does this happen?
The import price is just one of many factors that influence the selling price in Dubai or any Middle Eastern market. It does not solely determine the future price trend in Dubai. The daily price here depends on supply volume and demand volume in the market and is also affected by the availability of substitute products.
For example, the price of Vietnamese lemons in Dubai is currently quite low — around 9–11 AED per 4.5 kg box. The reason is an oversupply in the market while demand remains low.
=> Oversupply.
In addition, lemons from other sources (substitutes) such as India, Egypt, etc., have contributed to driving down the price of this item.
=> As a result, although the initial CIF import price was quite high (because at the time of import, Vietnamese lemon supply was low and the market was hot), importers are now suffering heavy losses.
If you are an importer, what should you do in this case?
Please contact our team for deeper consultation on the market.
