Buyers in Europe have high inventories of Alaska pollock and US fishing companies -- which are out catching their Marine Stewardship Council (MSC)-certified fish in the A-season at the moment – have high stock levels, sources told IntraFish.
“I believe US sellers have a lot of stock on their hands which makes them put pressure on price,” said Dmitry Fedotov, founder of Superocean, a Hong Kong based supplier with access to around 80,000 metric tons of Alaska pollock in Russia.
“Rumors are that they are offering Alaska pollock blocks at $3,150 (€2,355) per metric ton,” he told IntraFish.
A buyer at a large European processing firm said he had also seen this price level. “I have heard that, but it depends on the selling terms and the quality,” he said.
$3,200 (€2,393) is a more realist level for frozen-at-sea pollock from the US, while some of the land-frozen pollock from the US is down at $3,150 (€2,355), he said.
However, neither executive feels the price will drop below $3,000 (€2,243).
A European trader is more bullish.
“I have not heard of $3,100 (€2,318) -- I think the general price is around $3,300 (€2,468) to $3,400 (€2,542) at the moment but sales are sporadic,” he told IntraFish. “I think lots of buyers are holding back until Boston seafood show to see if prices are going up or down.”
It will be “interesting to see where we land,” he said.
Russian prices down
Prices for headed and gutted (H&G) pollock from Russian to China are also down at $1,350 (€1,010), said Fedotov.
“Buyers in China are saying that they have lots of stock, but companies are still buying,” he said. “I have sold roughly 3,600 metric tons of H&G pollock into Chinese plants over the last week and a half.”
The Chinese message of high stocks could be a message in the lead up to Boston, in order to drive down US prices and compete on prices, he said. “Maybe the Chinese are playing the game in the lead up to Boston, which promises to be very interesting.”
Frank Zhou, an executive with Chinese processor Ocean One Enterprise, said prices have fallen further, to the $1,300 (€972.1) level.
“Demand is very low from the EU and the United States, especially EU,” he said. “Chinese plants here have big inventories. Many have to stop processing, since their cold storages are full with finished
products. Not many plants want to buy pollock now.”
The weak euro is also a factor, which means costs for EU customers are almost 10 percent higher, he said.
“Single frozen pollock products are sold at low prices, very close to twice frozen, which has caused many customers turn to buy single frozen instead.”
Price fall normal
It is normal that the prices fall this time of year, said Daniel Lin, an executive who has set up his own company, Ocean Kingdom Seafood, to supply wild-caught frozen at sea fish to the processing industry and wholesalers.
“It’s normal that the price falls from $1670 (€1,249) to $1350 (€1,010) per metric ton -- for H&G, 25+ centimeters -- from January to February, every year this thing happens,” he said.
“Unlike cod or other high-value species -- bought as spot against customer orders -- pollock is a species processing plants can buy in advance and corner as inventory,” he said.
Most Chinese processing plants buy pollock to a set plan, said Lin.
This involves buying 70 percent of annual demand in February to April, because there is a catch of around 100,000 metric tons in the Sea of Okhotsk.
Then, they buy the rest of the demand in November up to January, before the Chinese New Year festival. “Therefore, in January and February, there is very little trading. That causes the price falls dramatically.”
The positive business momentum in the domestic seafood sector could last into the first half of 2025, according to experts.
(seafood.vasep.com.vn) In the first three quarters of 2024, brackish water shrimp production exceeded 1.1 million tons, with export revenue reaching $2.8 billion. The seafood industry has set a target of $4 billion for shrimp exports for the entire year.
While the price of 1 kg of shrimp hovers around 20 USD, the value of 1 kg of chitosan—extracted from shrimp—can soar to 500 USD. This highlights a significant challenge within the seafood processing industry.
(seafood.vasep.com.vn) By October, Vietnam's shrimp exports had generated nearly $3 billion, reflecting an increase of over 10% compared to the same period last year. Shrimp remains the leading commodity contributing to the export turnover of the entire seafood industry.
(seafood.vasep.com.vn) Sao Ta Foods Joint Stock Company (FIMEX VN - HoSE: FMC) concluded Q3/2024 with significant growth in revenue. Specifically, Sao Ta Food recorded revenue of VND 2,845 billion, a 58.6% increase year-on-year. The company's profit after tax reached VND 95 billion, up 6.2%.
VASEP's Seafood Export Report for the third quarter of 2024 provides a comprehensive overview of Vietnam's seafood export performance in the first nine months, with impressive results reaching $7.2 billion—an increase of 9% over the same period last year. In the third quarter alone, seafood exports grew by 15%, totaling $2.8 billion. This growth is attributed to a recovery in demand and prices in key markets such as the U.S. and China, as well as the competitive advantage of value-added products in markets like Japan and Australia.
(seafood.vasep.com.vn) Khánh Hòa province is currently leading the way in implementing Electric Catch Documentation and Traceability System (eCDTs).
(seafood.vasep.com.vn) The European Union, with its stringent quality requirements, has become an attractive destination for the shrimp industry of many countries, including Vietnam. Vietnamese shrimp meeting EU export standards not only increases product value but also solidifies Vietnam's position in the global seafood market.
(seafood.vasep.com.vn) Vietnam's shrimp exports accounted for the highest export value among all seafood products in the first nine months of the year, reaching nearly $2.8 billion, a 10.5% increase compared to the same period in 2023.
(seafood.vasep.com.vn) According to the Ben Tre Statistics Department, the province’s aquaculture sector has been relatively stable and has experienced growth recently, particularly due to the high efficiency of intensive shrimp farming models.
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