We see an impact on the market due to Preliminary Dumping Rates. The US has imposed a 10.58% dumping rate on all shrimp imported from Ecuador starting May 30, 2024. The only company that has a 1.58% rate is Santa Priscila. These numbers are not final and are subject to appeal, but as of now the US government requires importers to deposit 10.58%.
The immediate effect of this additional 10.58% is that Ecuadorian shrimp becomes less competitive in price compared to shrimp from India and other origins sent to the USA. Meanwhile, importers from the USA are demanding producers to buy products on DDP (Delivered Duty Paid) terms, meaning that the responsibility to pay the duty lies with the producers. This situation makes the USA market less attractive to Ecuadorian companies, who will now seek to place more products in other markets.
There is noticeable concern and caution among some producers in Ecuador due to this change. As we always emphasize, it is crucial to understand how this will affect the market. The USA imports all types of products, including HOSO (Head-On Shell-On), HLSO (Headless Shell-On), and PD (Peeled and Deveined), with HLSO and Peeled shrimps remaining the main imported products.
Until now the price of HLSO was similar to HOSO, so there was no incentive for farmers to produce HOSO. Producers might find an alternative to sell more HLSO to reprocessing countries like China and Vietnam. On the other hand, Santa Priscila is a large company, so their USA volume might increase, but the extent is uncertain.
The Chinese market remains stable as buyers seek low prices and are unwilling to pay more. Next week, the Zhanjiang Seafood Show will be held in China. We will be attending and will report back with any significant insights after discussing with our clients.
India’s main harvest season is going to start any time, this is valid for the Indian black tiger shrimp and Indian vannamei shrimp.
Ecuador farm gate prices are stable, albeit low for farmers.
Overall, Ecuador exporting prices are stable with no major changes expected.
For stakeholders in the shrimp market, the key lies in staying informed and adaptable as the situation evolves. If you’re seeking specific advice or insights tailored to your situation, feel free to contact us. We’re here to assist and guide you through these uncertain times.
Stay tuned to Vannamei Tips for ongoing updates and expert analysis.
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