Salmon prices plummet by 15 percent

News
1096

New steep price fall.

“A sharp fall in prices. The market is dead quiet. It is not we who dictate the prices at the moment, it is the customers who do”, said an exporter to SalmonBusiness.

“The air cargo market has stalled. South Korea warns that it will reduce intake next week. There is a slight reduction all the way. We are not very happy with this situation”, he added.

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.

Bad start
The price peak around Christmas was short-lived. Last week, the salmon price was trading between EUR 4 and 5. The price drop is around 15 percent – in one week.

“The exporters have had a very bad start to the year”.

Several exporters and importers point to purchase levels of EUR 3.8 and 3.9 (FOB fish farmer) for the most traded fish sizes. The big salmon is marginally below this.

Postponed harvesting
“It falls and falls. It is a weak market. Many have postponed harvesting and the market is entering the low season. It will be exciting to see how low we will go”, said an importer.

“Around 40 kroner (EUR 4.1), a lot of fish has been sold at those levels there”, he said about the salmon price.

“This quarter I think it will be the most difficult quarter in the pandemic. There are relatively much big fish around. Historically high volume and historically low level of contracts. Every educated person knows what that means. We are now having an effect of fantastic growth and delayed harvesting”, he pointed out.

Lots of fish in the sea
“People have taken into account that prices have fallen. 38-39 kroner (EUR 3.9-4.0) for 3+ kg. I do not think you will find so many 40 kroner (EUR 4.1) buyers”, said a trader.

“There is so much fish in the sea versus the market potential. There will not be any market improvement until we have finished February, I think. I do not think one will open so much on the corona right away”, he added.