Supply squeeze gives the highest spot prices by the start of March since the mid 1980s.
“Nova Sea and Nordlaks have closed down [their processing plants]. Salaks will shut down. There is hardly any fish available in Northern Norway,” says a North Norwegian fish farmer who points to prices of NOK 71, 72 and 73 at the most traded sizes.
“What I hear is just over eight euros delivered Europe. This corresponds to NOK 72-73 to farmer,” says an Eastern European purchaser to SalmonBusiness.
The movements are great this trading day.
“One such a Friday, this changes from hour to hour,” says a sales manager at a major fish farming company. “The last thing I have heard for Wednesday delivery is NOK 74, 76 and 77.50 for 3-4, 4-5 and 5-6 [kilograms]. Had you asked three hours ago, there would have been more 72-73 kroner.
“It is surprising that it turns so much so abruptly, but it is nice,” he adds.
There is no doubt that there is talk of a sharp rise in prices. The question is just how high it goes.
“We take it very easy. We hear 70-71 kroner at 3-4 kilograms, 71-72 kroner at 4-5 kilograms and 72-74 kroner at 5+ kilograms in the south [of Norway]. That’s where it’s being traded,” says one exporter.
He is aware of the cause of the recovery.
“There are many processing plants that are closed in the north [of Norway]. Therefore, the offer is stifled.”
With this, the salmon price has risen to approximately two euros in just two weeks.