On Sunday, 30th April, the Soummam tender for a total of 12.5k mt skimmed milk powder (SMP) and whole milk powder (WMP), with delivery starting in Q3 2023, closed. Several market sources indicated that SMP volumes have been largely covered by EU suppliers, while WMP volumes have been split between EU and New Zealand suppliers. Closing prices for the tender have been reported as around €2,400/mt CFR Algeria for SMP.
While SMP volumes were reported to largely come out of Europe and to a smaller extent out of North America, WMP has been reportedly largely supplied out of New Zealand. However, no details surrounding WMP price levels have been reported thus far.
During the last week of the month, the Algerian buying agency, Office National Interprofessional du Lait et de Produtis Laitiers (ONIL) issued a new tender for SMP and WMP, for delivery in Q3. The tender is closing Thursday 4th May. ONIL tenders continue to be a key indicator for international demand, because Algeria is one of the leading consumers and importers of dry milk powder worldwide. Several market sources indicated offer prices for the ONIL tender around $2,800/2,900/mt CFR Algeria. Expected volumes remain uncertain.
A market source stated, “some of our key clients in Southeast Asia have not sourced their usual volumes for H2. The two tenders shortly after each other supported by continued good demand coming from the Middle East could bring these buyers back to the market.”
