India is a major supplier of vannamei shrimp products to the Chinese and US markets, and exports to the US have been strong in recent months. However, the price of Indian shrimp has started to fall since last month, falling between 90 rupees ($1.16) and 100 rupees ($1.29) per kilogram.
Similarly, Ecuador’s exports to the United States have also been very strong in the past few months, but since January 31, 2022, the price of raw materials of vannamei shrimp in the pond has shown a gradual downward trend. For 50/60, a decrease of $0.4/kg.
Vannamei shrimp prices dropped in the United States for 3 consecutive months: $9.46/kg in January, $9.59/kg in February, and $9.52/kg in March, which represents a trend of “decreasing demand and increasing supply”, and prices are expected to continue to decline.
Due to the epidemic, China is tightening its domestic epidemic prevention policy, and many export manufacturers in Ecuador have been urgently stopped by Chinese customs. Therefore, many manufacturers in Ecuador and other countries are doing their best to export their products to the United States. In the past few months, the US market has imported a large amount of shrimp, and the market cannot digest all of them in a short time, so the inventory remains high. The U.S. market will face an oversupply situation in the coming months.
Under the circumstance of weak consumption and tight import policies in the Chinese market and high inventory in the US market, the prices of major vannamei shrimp suppliers such as Ecuador and India will fall further.