Things are heating up.
With just over a month to go until Christmas, demand for salmon is building up. Without an increase in supply, the price goes up.
“Prices have risen quite a bit in the market. It’s quite a lot,” says a buyer to SalmonBusiness.[factbox]
“There have been a number of cancellations and there has been some bad weather, both here (in Western Norway) and in Scotland. This has meant that some fish have been delayed entering the market. So that has driven the price up by one euro – on all sizes,” he explains.
He sees the following spot prices for the coming week:
- 3-4 kg NOK 74 (EUR 7.1)
- 4-5 kg NOK 76 (EUR 7.3)
- 5-6 kg NOK 78 (EUR 7.5)
- 6+ kg over NOK 80 (EUR 7.7)
Bid up
“We have bought at those prices. We need the fish, and bid up the price everywhere. Whether it lasts is another matter. It is probably doubtful,” he admits.
But the contract market is still dry. Today’s move by the Norwegian government does not change that.
“A standard price? It is not concrete. I don’t expect any clarification this year. It doesn’t change anything. No contracts. Completely canceled – everything.”
“There is speculation that (German supermarket chain) Aldi is considering cutting fresh Norwegian salmon, the turnover rate is too poor. There is recession in Germany. And they have not received contract offers for next year. They are completely dependent on getting prices (on contracts – editor’s note).”
All sources SalmonBusiness has spoken to on Friday confirm rising prices.
Not unexpected
“I hear 3-4 pass NOK 75 (EUR 7.2). Not much has been traded so far, but you can see how it looks. Maybe there will be limited supplies, and then the (pre-Christmas) demand will come. Then there will be an upswing. Not unexpected,” says a trader.
“75, 76, 77 kroner (EUR 7.2, 7.3, 7.4), I guess. Not much has been done yet, but this is a good start,” he adds.
A fish farmer refers to 3-4 kg prices of NOK 76 (EUR 7.3).
“A big jump,” he says. “China fish for NOK 100 (EUR 9.5),” he adds.
Prices thus rise by more than one euro – in one week.
“All right, it will be expensive next week,” says an exporter. ” There have been some who have canceled harvesting in Western Norway. It has shaken things up quite a bit.”
“NOK 75, 77, 81 (EUR 7.2, 7.4, 7.8) are our 3-6 kg purchases – as it looks now,” he says.
