Clove Market Update: Stagnant Prices Amid Soft Demand and Ample Supply

The global clove market remains characterized by sluggish price action, with traders and importers noting subdued demand and no significant upward impetus despite limited supply in key producing regions. Prices in Delhi stood steady this week, with only a negligible $0.12 per kg uptick proving insufficient to shift underlying sentiment. Market participants attribute this soft tone to adequate local and international inventories coupled with lackluster demand from major consuming destinations such as the Middle East and Europe. This environment of ample availability, subdued trade activity, and absence of speculative interest continues to weigh on market morale, with the near-term outlook favoring range-bound or slightly softer pricing.

Weather developments in primary origins like Indonesia, Madagascar, and Tanzania warrant attention, but as of now, no immediate supply disruptions are foreseen. Market watchers should remain alert for signs of demand revival, which could provide necessary support for firmer prices in coming weeks.

📈 Prices

Product	Type	Location	Latest Price (EUR/kg)	Previous Price (EUR/kg)	Weekly Change	Market Sentiment	Offer Link
Cloves	Whole, Organic	New Delhi, IN	9.55	9.55	0.00	Stable/Soft	View Offer
Cloves	Ground, Organic	New Delhi, IN	9.65	9.65	0.00	Stable/Soft	View Offer

🌍 Supply & Demand

• Local supplies in India are described as adequate, with no reports of domestic shortages.
• International demand, particularly from the Middle East and Europe, remains muted.
• No active speculative buying noted; purchasing is mainly on a need basis.
• Traders report that some buyers are cautious, waiting for clearer signals before restocking.

📊 Fundamentals

• Market continues to trade sideways amid weak off-take from traditional and emerging clove markets.
• Limited export activity in key origins (Indonesia, Madagascar, Tanzania), but no major supply disruptions observed.
• Inventories at destination markets are comfortable, reducing urgency for fresh import bookings.
• The previous Clove market report also highlighted a period of stagnant prices with little support from demand fundamentals, underscoring ongoing challenges for price recovery.

🌦️ Weather Outlook

• South and Southeast Asia: No major adverse events reported; monsoon is progressing normally.
• Africa (Madagascar, Tanzania): Weather conditions support upcoming harvests, with no alerts for crop-threatening rains or heatwaves in the short term.
• Indonesia: No disruptions in main growing islands; neutral-to-supportive weather for crop health.

Impact: Stable weather patterns across producing regions point to continued adequate supply, limiting scope for sharp price increases in the immediate term.

🌐 Global Production & Stock Comparison

Country	Est. 2024 Production (MT)	2024 Ending Stocks (MT)	Main Export Destinations
Indonesia	85,000	15,000	India, Middle East, Europe
Madagascar	12,000	2,500	Europe, US, India
Tanzania	9,500	1,900	Middle East, India
India	2,200	900	Domestic

📆 Trading Outlook & Recommendations

• 📉 Short-term risk remains to the downside due to sufficient stocks and weak demand.
• 🔎 Market participants should watch for signs of fresh international buying, especially as Ramadan and other festivals approach, which could spur demand-based rallies.
• 🤝 Sellers are advised to be flexible in price negotiations and maintain strong relationships with repeat buyers.
• ➖ No immediate need to accelerate bookings with prices showing little volatility.
• ⏳ Buyers may continue to purchase hand-to-mouth with little fear of upward price spikes for now.

📅 3-Day Regional Price Forecast (New Delhi)

Date	Price Whole (EUR/kg)	Price Ground (EUR/kg)	Trend
Aug 24, 2025	9.55	9.65	Stable
Aug 25, 2025	9.55	9.65	Stable
Aug 26, 2025	9.53	9.63	Slightly down