EP 546 | AIRED 07/12/2021
July 12, 2021--- This week we provide our latest China Update for news on the current shipping conditions out of China and an update on the return of North American shipments - that are coming, with a price.
--- Plants were told by shipping agents that bookings to North America will be available this July, however, booking won’t be as easy as expected as many boats are still sitting in the US and can’t go back to China due to COVID policies and protocols.
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--- Now moving onto the state of raw materials pricing in China.
The price of Pollock continues to sit at $1,450 per metric tonne USD (or $0.70/lb USD) since we last reported on it in June.
Russian Pollock is readily available in Russia as they refrain from selling to China in fear of the shipment being returned.
Alaskan bycatch Cod will begin this August when Flounder catching also starts their B season.
Russian boats are offering Pacific Cod at $4,000 per metric tonne (or $1.80/lb USD) for long line with prices still expected to rise over the next few weeks.
Haddock plants have started receiving some fish, however, they have been disappointingly small sizes starting around 300-500g and 500-1000g.
As Russian raw materials continue to experience obstacles entering China, pricing for Norwegian products has gone up from $3200 to $3800 per metric tonne (or $1.75/lb USD).
For Salmon, plants have started to hear firm offers on Pinks from Russia starting around $3,700 per metric tonne (or $1.70/lb USD) and Chum pricing around $4,400 (or $2.00/lb USD) set with CFR China increased import costs.
The whitefish import and domestic supply market is hot due to lack of supply and inventory from Asia and domestic production being negligible.
Buyer beware of the importers that are still flogging 80-90 net weight products. These products are everywhere in volatile markets, much like the market we are currently in.
Also beware of importers quoting prices before the product arrives, to then disclose freight costs have unexpectedly risen and are available for the new increased price. Although we know from experience that we are aware of our freight costs from Asia before the product leaves.
Our recommendation is to act fast on quality offers from quality suppliers. Prices will change daily, but there is no downward pressure on pricing we can see.
It’s been three steps forward, three steps back right now but Insider knowledge leads us to believe inventory levels should be closer to normal come October.