Zhanjiang Expo 2023
The 9th edition of the China International Aquaculture Products Expo 2023 was held in Zhanjiang, a prominent hub of China’s aquaculture industry, located in the country’s southern region.
Zhanjiang Expo 2023 was a bustling event with participation from over 10 countries including Ecuador, India, Malaysia, among others, and over 300 Chinese aquaculture firms. It attracted nearly 10,000 industry professionals.
The event offered a broad spectrum of exhibits, from shrimp products and farming technology to environmental solutions and cold chain logistics.
There was an unprecedented presence from Ecuador with 14 factories making their mark at the event, a record for the country.
This year, due to a significant reduction in export orders, many of China’s shrimp processing factories have entered the domestic market through the exhibition.
Present Status of Imported Shrimp on China:
Presently, the Chinese market is grappling with a large frozen shrimp inventory, with estimates suggesting a stockpile of up to 7000 containers. As a result of this excessive inventory, Chinese importers are less enthusiastic about placing orders.
In the backdrop of an oversupply scenario where inventory levels are alarmingly high, domestic sales prices have been declining steadily. This has resulted in significant financial losses for importers, with losses varying from 20,000-40,000 yuan/container (2700-5500 USD) in less common instances to a hefty 60,000-100,000 yuan/container (8000-13500 USD) in many cases.
Some cash-strapped importers resort to selling their goods regardless of costs.
Present Status of Farmed Shrimp in China’s Market:
The local shrimp market is experiencing a consistent price decline due to weak demand and limited purchasing power.
Also recent weather patterns, marked by high temperatures and heavy rain, have led to higher disease rates in shrimp ponds, prompting an increase in early harvests. This unexpected surge in supply is putting downward pressure on prices, with current rates standing at 22-23 yuan/jin (6,00-6,33 USD/Kg aprox) for 30-piece shrimp, 17-18.5 yuan/jin (4,67- 5,10 USD/Kg) for 40-piece shrimp, and 15-16 yuan/jin (4,13-4,41 USD/Kg) for 50-piece shrimp.
This trend represents a drop from the prices just two days ago, and an overall decline from the previous week.
During the event, we engaged in productive discussions with numerous clients, including importers and wholesalers. Here’s an encapsulation of frequently echoed viewpoints:
- At the expo, Ecuador prices were slightly higher, with an increase of around $0.1-0.2/kg, but these were open for discussion and negotiation.
- Foreign factories are showing resistance to lowering their prices further, and importers find it challenging to cope with price increases.
- Chinese ports are currently overloaded with containers, which implies it might take around three months of regular sales to clear the existing stockpile. As a result, importers are likely to make modest purchases.
- At the earliest, the Chinese market may not improve significantly until November. As well, there is some skepticism regarding the likelihood of China’s consumption returning to pre-pandemic levels soon.
- Chinese importers currently lean towards a ‘wait-and-see’ approach rather than rushing into procurement, with a keen focus on the absorption of domestic inventory.
We believe the timeframe post the Zhanjiang exhibition will be a crucial turning point for analyzing price trends. Although foreign factories may uphold their current price points for the week ahead, we foresee a clearer picture of future price movements surfacing in about two weeks, after Ecuador has taken into account feedback from the Chinese market.