New decline: Lowest June price in six years

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Increased harvest volumes lower the price.

“I hear 50-51 kroner on 3-5 kg. People have lost money all this week as well,” said an importer to SalmonBusiness.

That means another price drop – fourth straight week. But the decline this time is only on a few of euro cents. Nevertheless, a price level just above EUR 5 is the lowest recorded in June since 2015.

Facts

Every Friday after lunch, SalmonBusiness report spot prices for salmon. These are fish to be delivered the following week. We contact several links in the value chain, including farmers, exporters and importers, and always have at least five independent sources, although not all sources are necessarily displayed. We vary the sources we use and do not use the same sources each time.

“It is a price drop. Next week will be 50 (EUR 5) kroner for 3-4, 51 kroner (EUR 5.1) for 4-5 and 53-54 kroner (EUR 5.3-5.4) for 5-6. 6+ is 57-58 kroner (EUR 5.7-5.8). In Europe, you do not get paid very well, but the air cargo market is good,” said a trader.

More fish
The price change seems to be volume driven.

“A little more fish is coming up, the market is a little touchy. There was low supplies in May. Much more access now. Much more access,” he repeated.

“With an increase in the quantity by 5,000 tonnes a week more than one had in May, then it [the price] goes down without saying. This is the price needed to get the VAP industry going again in Europe,” he said.

«3/4 51 kroner (EUR 5.1), 4/5 52-53 kroner (EUR 5.2-5.3), 5-6 55 kroner (EUR 5.5), 6+ 59 kroner (EUR 5.9)», an exporter wrote in an SMS to SalmonBusiness.

Smaller spreads
“We have not sold anything, but believe it’ll be relatively flat,” said a fish farmer hopefully about the next week’s salmon price.

Others confirm a decline in price.

“Today we probably have to go down to 54, 56 and 58 kroner [for 3-6 kg]. It feels like there will be a little smaller spreads between the sizes, maybe more like 54-55 kroner. There is a slight decrease [in price] of 3-4 and 4-5. That’s what we have as a target, and we’ve got some sales on that. We have done 9-10 sales of whole trucks on that – including two we did yesterday,” said a farmer who described the market as “slow”.

“The big fish is a bit challenging, with shutdowns in China with Covid-19. And it is reflected in the price,” he admitted.