Salmon’s rock bottom price is over, says analyst

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But there may be a bumpy road ahead for international salmon consumption.

Last Friday, SalmonBusiness reported a significant rise in the spot price for salmon. The majority of the fish were being traded in the EUR4- EUR 5kg mark after lingering at EUR 4 for four weeks in a row.

Now several salmon analysts believe the rock bottom price is behind us.

“We believe that levels we have seen now around the end of the month probably represent the bottom of the market. Now the prices are so low that it is difficult to imagine them going further down,” said Nordea’s Kolbjørn Giskeødegaard to E24.

DNB Markets’ analysis competitor, Alexander Aukner, said he believes prices will rise gradually towards Christmas.

“There is nothing wrong with demand. Since a lot of fish have been taken out at low weights, this means that growth potential in the future has been reduced,” he said.

However, Giskeoedgård pointed out that there may be road bumps ahead.

“The risk of a severe Brexit combined with recession risk in Germany and weak economic development in general in Europe is not a very positive backdrop for consumption. It could affect salmon consumption, even though it has gone down historically,” he told E24.

As per usual, SalmonBusiness will report the salmon spot price just after lunch on Friday.