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Sources from Thailand, Ecuador, the United States, Spain and other countries said that the price of squid production continued to fall, China's supply increased, but demand is declining.
Since the summer months, the shipping prices of the two largest tuna (salmon) processing industry centers in Thailand and Thailand have continued to fall, causing shocks in the global market.
According to a source, the current price of raw materials for squid in Bangkok, Thailand is $1,200/ton, and the price in April was $1,600/ton, which fell to $1,450-$1,500/ton in May.
The Thai source believes that increasing the supply of Chinese companies to major global markets is an important reason for the price decline. In addition, the demand in the Middle East during the fasting month decreased, and the supply in the short-term was oversupplied, which increased the pressure on prices.
Another Thai big canned tuna producer executive predicts that supply will increase in June and prices are likely to fall to $1,115/ton.
During Thailand's Asian Food Show (Thaifex), Thailand's Diamond Food Product Marketing Director Thanyakorn Pindaruchi told UCN that the company exports 12,000 tons of tuna processed products annually, and about 70-75% of them are shipped to Middle East countries. During the fasting month, company orders were reduced by 20%.
An American importer expects that the price of squid is likely to continue to fall, and the inventory of US ports is high, but demand cannot keep up. “I understand that China, South Korea and Taiwan are still building super seine ships, and East Asian production will increase,” he said.
"In addition to the increase in output, the US import tariff of 25% on China has an impact on the entire market. Because of the trade war, Chinese tuna is too expensive and the United States cannot accept it." He said, "Whether it is a Chinese exporter or an American importer, It is impossible to resolve the 25% tax rate. It is very difficult for China to export to the United States. They will certainly accelerate the development of markets in other countries and even to Thailand."
According to the International Trade Center (ITC) data, a total of 105,000 tons of tuna loin and canned food were exported last year. According to US sources, 24,000 tons of loin is sold to the United States, and the total amount of raw materials consumed is about 50,000 tons.
“Many US importers may have misjudged the market situation and caused too much inventory. In the second half of last year, the United States purchased a large amount of tuna from Thailand, and at the beginning of this year, under the effect of small tuna import quotas, tariffs were as low as 6%. The standard rate is 12%."
According to an Ecuadorian source, the price of squid in the Manta area fell to $1,300/ton, and the yellowfin tuna fell above $20,200/ton over 20 kg. And he believes that in addition to the increase in global supply, the reasons for the instability of Ecuadorian tuna prices are also related to local policies. Ecuador is planning to introduce a stimulus to stimulate investment, including the investment in new tuna fishing vessels, and the government’s promise has not been implemented. "The price of tuna is unstable, and the promise has not been fulfilled. I don't think anyone is willing to venture into shipbuilding at this stage," he said.
The global tuna price cuts waved into the European market. “Spain prices are not ideal, and prices have not rebounded this year. On the contrary, because of price cuts in Bangkok, businesses are lowering prices.” A Spanish corporate executive said, “In addition, Chinese tuna loin is spreading in Spain, and most Chinese products still have Subsidy background."
He said that the current price of squid in the Spanish market is between $1,150-1,300/ton (depending on origin and size) and the price of yellowfin tuna is $2,000-$2,100/ton.
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