At the Qingdao Fisheries Expo, Russian pollock suppliers unexpectedly chose to raise prices, adding more variables to the already sluggish market. Currently, the quoted price of H&G (head and dirt removed) raw materials has risen to $1,250/t. The previous price of $1,100/t-$1,150/t has been stable for several months.
Dmitry Gusev, sales director of the Russian company Okeanrybflot, told UCN: "H&G prices have indeed increased. The price now starts at $1,250/t. I think it can rise to $1,300/t in November because the supply is declining." This news was obtained by two other sources. A Russian manufacturer confirmed that the reason for the price increase was the decline in supply and the increase in demand from China.
However, for Chinese processing companies, the Russian supplier's argument seems untenable. A Chinese entrepreneur said bluntly: "Will anyone buy it at this price? I don't think it is definitely unacceptable to us. There is still a lot of inventory in China, and everyone knows that Russia is under great pressure, and all problems will ultimately be solved by demand. .”
Another Chinese entrepreneur said: "We will not buy raw materials at high prices. We have never sold a transaction at a price above $1,200/t. The average price we purchase is $1,150/t." Secondary frozen products produced by Chinese processing plants (shipped to (Europe) is $2,600-$2,700/t, and rising raw material prices mean that Chinese factories will be unprofitable.
But there are also voices that believe that some factories need to properly restock before next year’s Spring Festival to maintain operations. Another theory is that Chinese companies must send finished products to Europe before January 1 next year because the EU will impose a 13.7% tariff on pollock originating from Russia. The EU has yet to make a clear statement on whether fish fillets produced by Chinese processing plants using Russian raw materials will be excluded from independent tariff quotas.
"In October, many factories start shipping large quantities to Europe, and they must arrive before January 1. This also means that the demand in November and December will be much less."
"If you go to purchase Russian raw materials now, it will be too late. Because there is Christmas in Europe, Chinese factories must deliver goods before December 10." The source said.
Gusev said that on the supply side, the four large fishing vessels owned by Okeanrybflot Company have completed the quota for the Sea of Okhotsk in the A quarter. The current production activities are mainly concentrated in the Bering Sea, but due to the large increase in the production of whole fish and surimi, and The continued production of fish fillets, H&G's is now relatively scarce. So prices are still going up.