In recent times, the prices of onions increased initially and then decreased and variations in demand emerging as the most important driver for changes in prices. The demand for onions on both the domestic as well as international markets has changed between weak and strong, creating a market pattern that has seen prices rise, which then drop. The market in January was predominantly supplied by the storage of aged onions. This was coupled with an insufficient supply of premium onions. From February until March, as fresh onions came into the market while the condition of storage onions decreased, the adverse effect on supply became more evident, resulting in a higher likelihood that prices would fall.

After on the National Day holiday, most vegetables prices on the national market continued to be high. Likewise, onions, which are marketed as a low-cost vegetable — remained high. As early as November approached, and with the closing of transfers of goods to production regions storage facilities were reluctant to send goods for delivery in the near period, which created short-term supply restrictions that drove price of onions higher. From late November onwards, supplies of winter veggies increased substantially including radish and cabbage that were readily available in huge quantities and at much lower costs. This meant that onions lost their advantage in price which led to a dramatic drop in demand at the end of the year as well as weaker sales support in the domestic market. From late November, brand new onions coming from India as well as Pakistan have entered the market. Due to the cost for Chinese onions, a few trading suppliers in Southeast Asia and South Asia have cut their orders from China and have seen an overall decrease in export volumes. In addition, the weakening of domestic sales and a decline in demand for exports has led to Chinese onions prices to fluctuate as well as decrease in the mid-November period until the end of December.

The month of January, which is traditionally a high-priced season due to Chinese New Year, saw an overall increase in prices for vegetables, which provided some assistance to the prices of onions. In addition, from mid-November 2024, traders in the United States have faced a volatile and trending downwards market. To reduce the risk of the future shipment of goods Many traders increased the sales of their stock. Thus, in early the month of January, 2025, traders had mostly exhausted their stock. With mid-January approaching and the markets downstream were getting ready for Christmas the demand for premium onions temporarily grew. The result was a tightening availability of premium onions in the areas of production as well as cold storage. This drove the prices higher.

In the aftermath of Chinese New Year after the Chinese New Year, the quantity of fresh onions coming from Yunnan is increasing daily. In terms of the market supply for onions between March and February 2025, there are traders who say that the total quantity of Chinese onions is greater than those of the past. With the number of new onions grows the demand and supply dynamics have been steadily stabilizing, posing the possibility of more price drops.

The Source Sublime China Information