Pollock raw material prices soar, the market may have no support

The article highlights a significant increase of 31% in the raw material price of Russian pollock, reaching $1,340/ton from week 31 to week 41 in 2024. This increase is deemed unfeasible for the market, with one Chinese processing company manager suggesting that prices above $1,320-$1,350/ton could result in unreasonably high prices for secondary frozen fillets. The high purchase prices were attributed to Chinese processing plants covering operational costs before the Spring Festival. It is anticipated that prices will drop to $1,000-$1,100/ton early in 2025, driven by limited supply and slow fishing production in the West Bering Sea.

From week 24 to week 30 of 2024, the raw material price of 25cm+ Russian pollock headed and gutted (H&G) (CFF China) was stable at around $1,010/ton, but from week 31 to week 41 (October 7-13), the price increased by 31%. The latest offer price is $1,340/ton, the same as last week. A Chinese processing company manager said that considering the price of secondary frozen fillets in the market, the current price range of H&G pollock as high as $1,320-$1,350/ton is "unfeasible". "If calculated based on the raw material price, plus freight and 13.7% European import tariffs, the calculated secondary frozen price will be between $3,500-$4, 000/ton, which is not feasible for the market." He pointed out that the price of PBO single frozen fish fillets in the United States in the B quarter was $3,500/ton, and the ex-warehouse price in Europe was $3,500-$4,000/ton, which did not provide price support for the secondary frozen fish fillet market. He added that the current fishing activities in ...