Chinese fishmeal prices hit year-high after Peruvian anchovy quota cut
News 02/01/2018 - Administrator
Prices for Peruvian fishmeal in China have hit a one-year high and are still rising, after the reduction in Peru’s anchovy quota led to a spike in prices at source.
According to a government source, last week -- week 47 -- Peruvian super prime fishmeal was trading at CNY 12,200-12,500 per metric ton ($1,855-1,901/t) in Shanghai, duties paid; prices not reached since August, 2016.
A source at the same agency told Undercurrent News on Monday (Nov. 27) prices had risen again, up CNY 500/t to CNY 12,700-13,000/t.
Peruvian super prime is being traded at similar prices in ports of Tianjin, Guangzhou and Dalian.
Prices have risen shortly after Peru reduced its anchovy fishing quota for the year’s second fishing season to 1.49 million metric tons. Just three weeks ago Peruvian super prime prices in China were bumping along at CNY 10,540/t.
Souce: Undercurrent News
Enrico Bachis, market research director at the Marine Ingredients Organization (IFFO), said some players are expecting the market could tighten further.
"Prices have increased as the lower-than-expected fishing quota announced in Peru last week, plus the high presence of juveniles in the current Peruvian anchovy biomass have led some players to believe that the global supply of marine ingredients might be tighter than expected in the coming months."
Earlier this month Undercurrent reported how Chinese fishmeal imports have surged to near record levels; in the nine months between January and September, China imported 1.358m metric tons of fishmeal, according to latest Chinese customs figures. This is 60% above levels during the same nine months last year, or 509,250t of additional fishmeal imports over the period.
Chinese fishmeal inventories rose to a peak of 214,000t in mid-September, on the back of the import surge. However, inventories have since fallen rapidly. Last week -- week 47 -- China held 139,000t of fishmeal in port, down 0.7% compared with the week prior.
In October, China imported 108,048t of fishmeal, according to Chinese customs, down 22% compared with September.
Domestic fishmeal prices
China also produces substantial quantities of fishmeal -- between 20-30% of the country's total fishmeal consumption. According to the government source, the increase in imported fishmeal prices has given a lift to domestic prices.
However, higher production has mitigated the increase. "The increase [in prices] is not large. Half-fat 63%-protein fishmeal in Shidao port, Shandong province, is being offered by factories at CNY 9,300-9,400/t, up CNY 200 compared with the week prior."
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