According to the report of Chinese shrimp importers, due to the weakness of the RMB and the rising import costs, the price of Ecuador’s shrimp enterprises fell.
Some importers believe that the price has reached the bottom. One importer said: “On the surface, Ecuador’s price has dropped too much, but the risk of Chinese importers still exists, and the domestic market with COVID-19 is more uncertain.”
According to media reports, the quotation of a large Ecuadorian exporter last week (October 31 to November 6) was $6.00 per kilogram for 30/40, lower than the price of $7.00 per kilogram before the 2021 China Fisheries and Seafood Expo. This means a decrease of US $1.00/kg compared with the same period last year.
An importer said that the price drop would help to offset the impact of the unstable RMB exchange rate. In the first ten days of November 2021, 1 US dollar converted into 6.39 yuan, and on November 3, 2022, the exchange rate was 7.31 yuan, a difference of 0.91 yuan.
In addition, some importers believe that the recent purchased goods may not arrive in China before Chinese new year due to the impact of shipping, transportation, customs clearance and other links. In order to reduce risk in the volatile market, some importers are replenishing a small amount of inventory, while others are selling at a lower price to obtain cash flow.
“Global production is soaring while the Chinese market is sluggish”, said one Chinese importer. “Supply exceeds demand, leading to price fluctuations. As long as COVID-19 can be controlled and the demand for catering services recovers, the market will stabilize. We expect it to be better next month.” Another importer said that the current market situation in China is still unstable. “The risk of collapse has always existed. It depends on whether we can persist. If not, the whole market will be in trouble.”