Imported vannamei market in China, overview.

Since November 1^st, Ecuador vannamei factories are decreasing prices consistently. Till November 10^th, over 90% of the Ecuador factories decreased the price with 0.2$ again, since November 1^st, it is a total decreased of around 0.5$.

What is the effect of the continuous reduction of Ecuadorian vannamei price on the Chinese market, and how will Chinese importers respond?

Due to the pandemic, the current situation of imported frozen products is tough in China. The imported frozen products are under very complicated inspection and control procedure, and supply chain management becomes more and more strict. On the other side, the local stock quantity of vannamei is still high, so there are not high incentives for additional purchases.

According to the analysis of Chinese industry insiders, the continuous reduction of Ecuador vannamei price also shows the excess of Ecuador offer.

Latest shipment time for Ecuador factories to catch the Chinese new year will be December 10^th, so factories are pushing last minute sales as much as possible.

In the past few years of vannamei import business between China & Ecuador, China faced the weak and unfair position. But this year the situation has changed, EU demand for Ecuador vannamei got big decrease; USA is still in big trouble, so China has become the best market for Ecuador vannamei.

Industry forecasts don´t anticipate big orders for the next 1-2 weeks, based on the following reasons:

1. China Frozen products import inspection and control procedure becoming complicated and supply chain management becoming more and more strict;

2. Low season, local sale busy time is 4-5 weeks before Chinese New year. And mostly, current purchases would increment the China stock, which is still at a high level;

3. Chinese importers are facing more and more import risk, as consumer confidence lowers because of the pandemic. If profit is not high they even choose just wait;

4. Importers always buy when they see the price increasing while choose waiting for the price decreasing.

So there are no strong reasons for Chinese importers to make big books within 1-2 weeks.