Soft demand as salmon spot prices are closer to break-even levels

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A salmon market in holiday mode feels the ripple effects of Covid-19. And a lot of fish will be harvested in the coming months.

After a short trip up to EUR 7 just a month ago, the salmon price has fallen far and heavy – by almost EUR 3 a kilogram. Next week gives no recoil.

“42, 44, 46 kroner (EUR 4.0, 4.2, e.6) for 3-6 kilograms,” said an exporter to SalmonBusiness.

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.

This means a decrease of EUR 0.2-0.4 for the most traded “industry sizes” compared to the price level last Friday.

This is the third week in a row that spot prices have fallen. The price level is approaching break-even for quite a few of the fish farmers. In a holiday-oriented salmon market, purchasing decisions are slow and reluctant.

“It is difficult to sell, even with relatively low prices,” commented a trader.

He sees prices “down to 40 kroner” (EUR 3.8) in what he calls a “waiting market”.

Market participants fully notice the Covid-19 effect, which has in reality shut down many large markets. China, the USA and Brazil currently only take in crumbs of what they would otherwise buy of salmon.

“It will be an acid test now, with eight to ten weeks of increasing uptake. It can be tough,” an exporter predicted.