South Korea’s Sesame Demand Slumps as Supplier Mix Shifts

South Korea’s sesame imports slumped by nearly one‑third in H1 2026, signalling weaker demand and inventory drawdowns, even as average import prices edged higher. A sharp June collapse and a pronounced shift towards US origin underline a market in transition rather than outright tightness. The global sesame complex currently faces softer export offers from key shippers while one major destination, South Korea, cuts volumes and rebalances origins. This combination of subdued buying and modestly firmer CIF prices into Korea suggests that lower logistics and competitive FOB levels are cushioning end‑user costs. For traders, the main story is not scarcity but changing trade flows and quality preferences, particularly the rise of US shipments at the expense of traditional African and Indian suppliers.

Prices

South Korea imported 25,605 tonnes of sesame seeds in January–June 2026, down 32% year on year, with import expenditure falling 29% to about USD 52.9 million. Despite this contraction, the average import price rose 3% to roughly USD 2,064/t, indicating buyers accepted slightly higher unit costs while sharply reducing volumes.

FOB offers from major exporters remain comparatively soft. Recent quotes for Egyptian natural sesame stand around EUR 1.77/kg for golden and EUR 1.30/kg for standard natural quality, while Indian natural sesame is near EUR 1.18–1.22/kg and hulled EU‑grade around EUR 1.40–1.43/kg, all modestly lower than late July. This divergence – firmer CIF Korea, slightly weaker FOB origin – highlights the role of freight, quality differentials and contract timing.

Supply & Demand

The steep reduction in Korean imports points primarily to weaker domestic consumption or active inventory drawdowns rather than supply shortage. Volumes fell from 37,507 tonnes in H1 2025 to 25,605 tonnes in H1 2026, with the downturn becoming acute in June when arrivals dropped 55% to just 3,269 tonnes.

China remained Korea’s largest supplier with 14,779 tonnes, but its shipments declined 12% year on year, underscoring broad‑based demand softness. At the same time, the United States boosted exports to Korea to 4,920 tonnes from 1,520 tonnes, signalling growing preference for US quality and possibly more competitive logistics or contract terms. India, Nigeria and Burkina Faso dropped out of Korea’s top five origins, reflecting a clear re‑ranking of suppliers.

Fundamentals & Trade Flows

The combination of lower import volumes and higher average prices suggests Korean buyers are prioritising specific qualities and origins, even while trimming overall exposure. The 13% year‑on‑year price rise on June cargoes, to around USD 2,042/t, coincided with the sharpest volume cut, indicating selective purchasing and potentially tighter quality requirements.

For global exporters, Korea’s retreat reduces immediate demand pressure but opens opportunities for origins such as the US that can align with Korean specifications and supply chain expectations. Traditional suppliers from India and West Africa may need to adjust pricing, quality assurances or delivery conditions to regain share, particularly as FOB quotes from Egypt and India indicate room for competitive positioning.

Short-Term Outlook & Trading Ideas

• Demand tone: Expect Korean import demand to remain subdued in the very short term as buyers work through stocks and monitor consumer offtake, especially after the steep June correction.
• Price bias: With FOB offers from Egypt and India slightly easing in EUR terms, near‑term global price risk appears sideways to mildly lower, unless new demand emerges from alternative Asian or Middle Eastern buyers.
• Strategy – buyers: Food manufacturers and importers with uncovered Q4 needs can use current soft FOB levels to extend coverage selectively, focusing on high‑spec hulled and black varieties where differentials may narrow if competition for Korean business intensifies.
• Strategy – sellers: Exporters targeting Korea should emphasise traceability and quality consistency and consider flexible shipment windows, while simultaneously diversifying outlets to markets with steadier demand profiles.

3-Day Price Indication (Directional)