Shrimp exports to China expected to lift by 7% in 2020

In the first quarter of 2020, China was hit hard by the Covid-19 pandemic. In the second quarter of 2020, the epidemic has been better controlled. Supply chain disruptions have been overcome, the demand for seafood including shrimp was also better.

China was the largest black tiger shrimp importer of Vietnam. In the first 6 months of 2020, in the structure of shrimp products exported to China, black tiger shrimp accounted for 32.7%, whiteleg shrimp accounted for 39.1%, and the rest was marine shrimp. Export of whiteleg shrimp and black tiger shrimp to China in the first half of 2020 slumped, only export of marine shrimp soared by 137%, especially dried marine shrimp surged by 1,812%.

According to data from China Customs, in the first 6 months of 2020, China imported 339,000 MT of frozen warm-water shrimp, worth $ 1.98 billion. China's imports of frozen warm water shrimp in June 2020 jumped by 36% compared to May 2020 to 75,000 MT, the highest level since December 2019. The import value of frozen warm-water shrimp reached US$420 million, up 34% compared to May.

Ecuador, the largest supplier of shrimp to China (accounting for 2/3 of China's shrimp imports in June), exports to China 50,000 MT of shrimp, an increase of 72% compared to May. India, the second-largest supplier of China, supplying 14,500 MT of shrimp to China in June, equivalent to the export volume in May. Thailand, Vietnam, and Argentina were the next major shrimp suppliers to China, each country supplying about 2,400 - 2,500 MT.

At the beginning of July 2020, Ecuador had many difficulties in shrimp exports to China as 3 major shrimp companies of this country were banned from exporting to China due to the detection of coronavirus on product packaging. Also in early July, some batches of shrimp exported from India to China were delayed customs clearance, plus tensions at the borderline between India and China. It is expected that shrimp exports from China's two largest shrimp suppliers, Ecuador and India, will decrease in the third quarter of 2020. It is forecast that Vietnam's shrimp exports to China will continue to increase in the third quarter of 2020, to offset the supply reduction from Ecuador and India.

China's domestic shrimp production this year is expected to decline due to disease on shrimp, China's cold-water shrimp imports also tend to decrease, China's economic growth in the second quarter of this year has been better and is forecasted not to decrease in the whole year. Therefore, China's demand for shrimp imports is not expected to decrease. It is expected that Vietnam's shrimp exports to China will increase by about 7% in 2020.