EP 617 | AIRED 11/28/2022
China Update: COVID-19, Freight Prices Drop, Chinese New Year Processing, Buyer's Market
Nov 28th, 2022 - Although cases have settled down in Qingdao, COVID-19 continues to hamper China as cases have now spread into 2 major southern cities.
Fish plants are still open, and the prospects of China gradually opening up are on the table as the Government is said to be currently testing 16 new vaccines.
Ocean freight continues to drop and is back close to 2020 levels for pricing.
Shipping lines are working hard to get bookings but most plants do not have many containers to ship.
Most plants are not running at full production capacity right now and plants are waiting for orders after Chinese New Year.
Usually by this time of year, plants are confirming contracts of Pollock with Russian and Korean companies, but this year, not many plants have made any moves yet.
Plants typically start the Chinese New Year break 10 weeks before the holiday, however this year there is speculation they may shutdown as early as before January 1st.
The upcoming Chinese New Year is on January 21st 2023 and plants would have normally been closing around January 10th.CHECK OUT OUR #WhatsGood CAMPAIGN
Which Seeks To Spotlight Something “Good” Happening In The Seafood World As Opposed To Unfortunate News.
The market has changed to a buyer’s market now with sales to the EU and North America slow, and no signs of picking up.
Except the sales of salted products are actually steady.
Some buyers are still taking high-end salted fillets, which are processed from longline Pacific Cod from Alaska.
Salmon packers are saying Salmon pricing won’t go up higher even if there is no fish available.
Instead, it might actually soften a bit after the Chinese New Year break.
This is a developing story as we continue to gather updates from China so keep tuned-in by subscribing to the Tradex Foods "3-Minute Market Insight"
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