The trend for high of prices of frozen skijpjack--raw materials of canned tuna and dried bonito--has come to a temporary halt.
The prices at major landing ports in Japan--such as Yaizu in Shizuoka Prefecture, west of Tokyo--now stand at around Y180 per kilo, down 20-30% from the all-time high level registered in April.
Market observers point out that demand for skipjack contracted globally due to the steep price rise since early this year. Japanese traders were also affected by the yen's downfall.
The prices at Bangkok--the international benchmark for frozen skipjack--had soared 20% from the start of the year to April under the impact of lackluster harvests in the Western and Central Pacific.
In the meantime, the yen's downturn against the dollar proceeded, which prompted an increasing number of fishing vessels to sell the caught fish not in Japan but Bangkok. This led to supply shortage in the Japanese market.
In May and afterwards, the international prices turned lower by 10-20% as the catch increased and traders refrained from buying due to the previous high prices.
A major dried bonito maker in Japan observed that the international prices have come to a level that ensures their profitability.
However, it is foreseen that international catch regulations would be strictly enforced in the July-October period due to concern over conservation of the resources.
A Japanese trading firm noted that the present prices may have formed the bottom, saying it is highly probable that landings would decrease again in the days ahead.