Heavy fall after last week’s upswing.
The salmon price has crashed this week. It has cost many exporters and importers dearly.
“There is a significant gap between farmers and exporters. Most have taken large losses this week, the worst week in a long time. I am hearing about prices in the region of NOK 75-77 ($7.50-$7.70/€6.60-€6.78). We will be cautious going into next week,” an exporter tells SalmonBusiness.
That represents a dramatic drop from last Friday, when prices were as high as NOK 100 ($10.00/€8.80).
Downturn
“The biggest downturn we have had this year. I cannot remember losing this much money in all my years in the industry. It is brutal,” says a trader.
“It already started on Friday. With media reports saying the price was heading well over NOK 100 ($10.00/€8.80). That was just bluff. And then the price was jazzed up several kroner. We paid far too much and could not sell anything.”
“Then on Monday we started selling at minus NOK 10 ($1.00/€0.88) and ended the week selling at minus NOK 20 ($2.00/€1.76). Now we are around NOK 75 ($7.50/€6.60) on 3+ in the north. 6+ you can buy at NOK 70-75 ($7.00-$7.50/€6.16-€6.60). But I do not have customers who want more fish. It is full.”
“Everyone wanted to harvest fish when they saw prices rising. It is bloody,” he says.
Collapse
All sources SalmonBusiness spoke with on Friday repeat a similar market picture.
“It has been a complete collapse. This happens when we go up so drastically over two weeks. It was far too much in too short a time. We never learn,” says a buyer.
“NOK 80 ($8.00/€7.04) in Oslo. Max.”
“The market accepts gradual increases. Gradual, but not this drastic over two weeks. We have had a proper correction. On 3-6 it is NOK 15 ($1.50/€1.32), and much more on the big fish. Asia is shutting down. China is not going to buy much. They are the ones with the largest volumes. In week 4 they had 4,000 tonnes. If they go from 4,000 tonnes to 2,000 tonnes, that will be felt,” the buyer says.
A lot of big fish
“We have not bought at that, but we have offers at NOK 75 ($7.50/€6.60),” says another source. “On the last thing we sold we lost NOK 25 ($2.50/€2.20). NOK 25 on a truck is a hell of a lot of money. It takes time to earn that back.”
“It seems there is still quite a lot of big fish left. And that mostly goes to China. They are not going to be at 4,000 tonnes this week… I am still very sceptical about 6+,” he says.
Others hope for slightly higher prices:
“I am hearing from our department here NOK 83-84 ($8.30-$8.40/€7.30-€7.39) for 3-6. How much has been sold I do not know,” says a farmer. “Big fish this week is well down in the NOK 70s ($7.00+/€6.16+).”