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Ecuadorian shrimp is continuing to pour into China despite a downturn in demand, causing a glut that is squeezing Chinese importers.
In May 2023, Ecaudor sent 150 million pounds of shrimp to China, up 40 percent from 107 million pounds sent in May 2022. However, sales by value were up only 15 percent to USD 340.7 million (EUR ). Year-to-date, Ecuador’s shrimp exports to China are up 43 percent by volume to 698 million pounds, while its sales by value are up just 20 percent to USD 1.66 billion (EUR 1.52 billion). Prices paid to Ecuadorian exporters averaged USD 2.42 (EUR 2.21) per kilo in May 2023, the lowest level since May 2021.
While some of that increase is attributable to China lifting its zero-Covid policy in November 2022, resulting in a flood of goods hitting China in subsequent months, there has been a noticeable drop-off in demand in China, according to Seafood Guide, a Chinese publication covering the seafood industry. The drop in demand has resulted in stockpiling and a hesitance on the part of Chinese seafood firms and retailers to either buy more shrimp or reduce their prices. The futures market for Ecuador-origin shrimp in China is tepid, it reported.
“Chinese buyers who are interested in buying are more inclined to wait and see the market situation,” Seafood Guide reported. “The market is caught in a vicious cycle of high prices for maintaining frozen inventory, along with low futures prices and importers’ domestic spot prices turning upside-down, coupled with lower borrowing costs.”
Chinese shrimp importers are facing …
Photo courtesy of chinahbzyg/Shutterstock
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