[title element=’h2′ color=’fff700′]Indian shrimp prices bounce back amid concern over 2015 market : December 24, 2014[/title]
Tom Seaman – UNDERCURRENT NEWS
Prices for Indian shrimp raw material have bounced back, after dropping close to 20% on some sizes in the last month.
Meanwhile, prices for smaller size raw material in Thailand are declining, having been firm the past few weeks.
According to prices given to Undercurrent News by industry sources (see below), prices are up pretty much across the board in India.
“Vannamei prices this week appear to have bounced back, since the packers have started to make some purchases,” one source managing India for Siam Canadian Group told Undercurrent. “It looks like several packers are concerned about the sharp decrease on availability because the season in Orissa and Kolkata is coming to an end.”
That means after Jan. 15, vannamei landing will only be available in Andhra Pradesh. “As a result the fierce competition among packers can be expected, provided the demand in general is also picking up,” he said.
Another source agreed, stating he expects to see some more upward movement in the New Year. “Since the winter crop was a flop, we expect arrivals only after April. To maintain inventory, packers are buying,” he told Undercurrent.
Having said that, he said he does not expect a big battle for raw material, as happened last year. “Now, only big players are keeping inventories, smaller players are just watching the situation,” he said. “Otherwise the price would have reached the same level as normal.”
For 2014, sources expect around 300,000 metric tons of vannamei and 20,000t of black tiger to be produced by India, compared to around 250,000t of vannamei and 30,000t of back tiger in 2013. The outlook for 2015 is for further increases.
The second source does not see a raw problem in 2015 in India, because of the ongoing dramatic increase in vannamei production.
There is less certainly on the market for 2015, however. “At the start of 2014, the international market was good, so everyone was buying. Now, nobody has a clue where the market is heading,” he said. Other sources are also bearish on the situation with the US market.
In Thailand, production is increasing, as farmers learn to adapt to early mortality syndrome (EMS). This year is seen as low in Thai shrimp production, with a level of around 200,000t.
As the recovery from EMS continues, Thailand is forecasting production of between 250,000-300,000t in 2015.
Prices for small-size raw material in Thailand had been firm, because demand was focused on these sizes.
According to the most recent figures, prices for larger shrimp have stayed level, with small sizes now dropping fast.
For the week of Dec. 15-20, prices for 60 pieces per kilogram shrimp are at THB 175-187/kg, compared to THB 177 the week before. For 70 and 80 count sizes, prices are down.
Prices for 70 count raw material are THB 165-178/kg, compared to THB 175-180/kg the week before. For 80 count, prices are THB 150-157/kg, compared to THB 166-173/kg the week before.
Production is increasing, end of year orders are mostly packed and there is a dull market, with a lack of demand in US, Jim Gulkin, managing director of Siam Canadian, told Undercurrent.