Let’s take a look at some recent developments:
• Supermarkets in the United States have placed orders for Ecuadorian shrimp.
• Chinese importers have resumed buying Ecuadorian shrimp.
• There has been a dramatic increase in the price of Ecuadorian shrimp.
• China is doing well with shrimp sales.
• India is still in the low season for vannamei shrimp.
How will it be achieved and what will the new equilibrium be?
There are two clear antagonistic positions here: Ecuador and China.
The Lantern Festival in China has just ended, which indicates that the sales peak during the Chinese Spring Festival has come to an end temporarily. In addition, Ecuador continues to increase price, it is expensive and even higher than the local market price. So Chinese importers are more cautious on purchasing orders. As a result, the price increase in Ecuador makes no sense, and their forecast is that the price will drop.
According to the exporter from Ecuador, the price of raw materials is increasing, farmers demand a better price and the orders are good, so the price will increase.
There have been several situations like this one in the past, however, no one knows what will happen this time and the uncertainty is high.
In the end, either China will pay a higher price or Ecuador will lower the price.