Prices decline again with worse to come, say traders

Aslak Berge

The decline in salmon prices continues.

Last Friday, the fall in salmon prices halted after four consecutive weeks on the slide. But this upward trend was short-lived.

“It’s a difficult market. It’s tough out there. Several of the major players are outright dumping fish. And commercially oriented companies don’t do that unless they have a lot of problem fish,” a farmer tells SalmonBusiness.

“I think it’s remarkably weak. If you look at the last 4-5 weeks, year-on-year volumes are down compared to last year. In week 26, prices dropped to NOK 83 ($7.89/€7.39). I don’t recall the currency last year, but such a large price drop without any real form of correction… we haven’t experienced that before.”

The average price has fallen nearly NOK 60 ($5.70/€5.34) from the peak in April.

Sliding Down

“Prices are ending up as low as NOK 75-76 ($7.13-7.22/€6.68-6.76),” he says, adding that it is not easy to understand with figures and statistics.

The message of falling prices was echoed by all sources on Friday.

“I hear prices are sliding down a bit. I guess they will end up at NOK 75-76 ($7.13-7.22/€6.68-6.76). It’s definitely a weakening from last Friday when the average was around NOK 79 ($7.51/€7.03),” says an exporter.

“It’s not a lively market. But it usually isn’t at this time,” he notes.

Early days

Others foresee even steeper price drops:

“It goes from about NOK 77 ($7.32/€6.85) for 3-4 kg this week down to NOK 68 ($6.46/€6.05), NOK 70 ($6.65/€6.23) for 4-5 kg, NOK 72 ($6.84/€6.41) for 5-6 kg, and NOK 76 ($7.22/€6.76) for 6+ kg,” says one trader.

“I have bought a truckload now at NOK 69 ($6.56/€6.14), NOK 70 ($6.65/€6.23), and NOK 71 ($6.74/€6.31) for 3-4 kg, 4-5 kg, and 5-6 kg. And that’s from a small farmer. But the large integrated ones are at the same prices next week. But it is still quite early. I wouldn’t be surprised if it comes down another couple of kroner before we are done,” says a buyer.

SalmonBusiness gathers spot prices for salmon every Friday after lunch, tracking fish to be delivered the following week. This process involves contacting multiple entities in the value chain, including farmers, exporters, and importers. At least five independent sources are consulted, though they may not always be publicly disclosed.


Related Articles