The vannamei shrimp market had high hopes for a surge in demand during the Chinese National Day holiday, but these expectations were far from met. Instead, the market took a downward turn after the holiday as end-market consumption plummeted. This consistent decline in consumption had a direct impact on seafood sales, including the once-popular seafood gifts that typically thrive in the lead-up to the Chinese National Day festivities. Adding to the disappointment, the catering sector failed to experience the anticipated boost in demand during the holiday season.
Though there was a silver lining for chain catering companies, as they managed to weather the storm relatively better than their non-chain counterparts, the recovery of small non-chain catering businesses fell notably short of expectations. Looking at the broader picture, the volume of consumption during the Chinese National Day period fell well below the average levels. Instead of witnessing an uptick in sales that would facilitate market digestion, the holiday season actually witnessed a continued decline in sales.
Unfortunately, this downward trend persisted even after the holiday, as end-market consumption continued to dwindle, further worsening the already bleak sales figures. This prolonged slump has had a significant impact on China’s domestic sales prices for vannamei shrimp, which currently find themselves in a difficult state. Making a profit has become a complicated task, with some sizes of vannamei shrimp being sold at a loss. Importers, by and large, now consider breaking even an exceptional achievement given the challenging market conditions.
In light of this challenging scenario, most importers have grown increasingly cautious and are adopting a wait-and-see approach when it comes to placing new orders. Some importers had initially mapped out purchasing plans but, after closely evaluating the unpredictable state of the Chinese market, have chosen to cancel their orders altogether. This cautious approach reflects the ongoing uncertainty and difficulties that the vannamei shrimp market is still dealing with on a worldwide scale.