A slowdown in shipments to the Middle East is driving domestic oversupply and putting downward pressure on prices in the short term.
China’s walnut market is currently undergoing an adjustment phase, marked by weaker exports and a sharp increase in inventories. According to EDNuts’ May 2025 market report, disruptions in April in the Middle East—one of the key destinations for walnuts—led to a sudden drop in shipments, directly impacting market balance.
The effects have been immediate: exports slowed significantly, while stocks accumulated तेजी, increasing pressure on the domestic market.
In terms of market trends, prices have declined as buyers adopt a more cautious stance, waiting for clearer signals. At the same time, inventory levels remain high, limiting any short-term recovery.
On the supply side, key producing regions such as Xinjiang and Yunnan continue to operate steadily, ensuring sufficient output. However, weak international demand has been the main factor slowing overall market activity.
Looking ahead, the outlook remains uncertain. The report suggests that recovery may take time, although a gradual improvement in exports could help stabilize prices in the coming months.
Key market takeaways:
- Weak external demand is pressuring the market
- High inventory levels require active management
- Exports will be critical to rebalancing supply
- Short-term volatility is expected
In this context, the industry’s focus will be on reactivating international trade flows and improving inventory management to prevent further downward pressure on prices.
