CFR North Asia Pork Belly price slides as demand weakens from Japan, South Korea

Platts CFR Pork Belly North Asia assessment has fallen 5% since late May, declining from a peak of $5,780/mt on May 26 to $5,486/mt on June 19, as weakening demand from key importers Japan and South Korea outweighs favorable foreign exchange conditions.

Japanese buyers are showing subdued purchasing interest due to elevated inventory levels approaching 200,000 mt, market participants said.

Japan's stockpiles have grown significantly in early 2025, with the Agriculture & Livestock Industries Corporation reporting a total pork inventory of 221,774 mt by end-April—a 13,580 mt increase from December 2024 levels and over 12% higher year-on-year, with imported meat comprising 88% of total stocks.

Market participants in Japan have indicated that the pork market has experienced sluggishness throughout 2025, with particularly low activity observed in April. Historically, April sees the highest demand for protein due to a cluster of four national holidays, which typically drives consumption to its peak. While domestic prices in Japan have remained stable, there has been a marked decline in transaction volumes, according to a source.

A Japanese buyer also shared that demand for chicken in Japan is higher now compared to pork and beef. A broker also mentioned that they notice a similar shift in protein demand, and it is mostly due to prices.

Similar to Japan, South Korea is experiencing weak demand and consumption of pork protein, which is limiting importers' purchasing decisions. "Pork consumption in [South] Korea has significantly declined due to the economic slowdown and weak demand. Despite a more favorable foreign exchange rate—approximately an 8% improvement since April—importers are still facing challenges in making decisions. It may take some time before demand recovers," a source noted.

Aside from weaker demand from buyers, the weight of the bellies from Spain is also contributing to the weakness in prices. "All pork bellies shipped from Barcelona currently weigh over 4 kg, as they come from heavier animals finished over the winter," said a Catalonia-based exporter.

European pork meat producers, who direct half of their production to EU markets and the other half to non-EU markets, are currently experiencing lower-than-expected demand within Europe. This weak demand is intensifying competition among major European suppliers, including Spain, Denmark, Germany, and the Netherlands. "Selling in Europe requires a lot of effort now," agree Spanish meat exporters.

Multiple market participants expect prices to gradually decline as demand from major importers decreases.