Image: Johnson Seafood / Vasep / FIS

China's Shrimp Import Prices Drop to Lowest Level in 10 Years

VIET NAM
Friday, July 05, 2024, 07:00 (GMT + 9)

According to the latest data from the General Administration of Customs of China, the country imported only 70,169 tons of frozen shrimp, worth 341 million USD in May.

Continuing the recent trend of reducing imports, China only recorded 70,169 tons of frozen shrimp customs clearance in May 2024, worth 341 million USD. Total volume decreased by 30% compared to the beginning of the year, value decreased by 41%. The average price decreased by 16% to 4.86 USD/kg.

Source: Johnson Seafood

In the first 5 months of 2024, China imported 367,435 tons of shrimp, worth 1.78 billion USD, down 11% in volume and 24% in value.

In 2024, Chinese shrimp imports will begin to decline as consumer demand for this product shows signs of decline and industry leaders decide to change their strategy to promote domestic shrimp production.

Source: Packdonmall -->

Ecuador remained China's largest shrimp supplier in May, with 50,129 tons, worth 226 million USD, down 31% in volume and 42% in value due to lower average prices. India ranked second with 12,598 tons. Both suppliers have seen a double-digit decline in shrimp export value to China this year.

In the first 5 months of 2024, the average shrimp import price from India (mainly headless shrimp) decreased by 11% to 5.07 USD/kg. Ecuadorian shrimp prices (mainly whole shrimp) decreased by 16% to 4.5 USD/kg.

Thus, the price of frozen warm water shrimp imported into China reached 4.86 USD/kg in the first 5 months of the year. This is the longest period in the past 10 years when the price of shrimp imported into China reached below 5 USD/kg.

In terms of volume, India exported 54,819 tons of shrimp to China in the first 5 months of the year, an increase of 15%; In contrast, Ecuador recorded a decrease of 11%, with a total of 267,700 tons of shrimp cleared through customs.

In addition, this time was also the first time shrimp imports from Malaysia, Vietnam, Argentina and Peru recorded a double-digit decline in both volume and value.

Source: Chinainout 

According to data from Vietnam Customs, as of June 15, 2024, Vietnamese shrimp exports to China & Hong Kong reached 295 million USD, up 19% over the same period last year. Although the cumulative number is still increasing, Vietnam's shrimp exports to China's growth has gradually decreased from January to April, and in May, there are signs of a sharp decline.

Source: Stockfile FIS 

The reason is that Vietnam's shrimp prices are high, making it difficult to compete with rival supplies in this market and China's domestic supply. Especially in the context of China's economic growth slowing down, people in this country are tightening their spending.

It is predicted that from June to September this year, shrimp exports from Vietnam to China will not increase or even decrease because China may focus on increasing purchases from Ecuador, India and Indonesia because these countries are impose high anti-dumping taxes in the US market.

In the Chinese market, although the advantage of cheap shrimp still belongs to Ecuador, that does not mean that Vietnamese shrimp does not have a chance. Because the color of Vietnamese shrimp after processing is always bright red, very suitable for the tastes of Chinese consumers. This is something that Ecuadorian shrimp cannot meet because they only raise it in earthen ponds, and after processing, the shrimp only has a light red color.

Furthermore, this market currently has high demand for small-sized shrimp, suitable for Vietnam's supply capacity, while other countries cannot supply much of this product.

It is expected that China's demand for shrimp imports will increase again from the third quarter of 2024 to serve the period of National Day and Mid-Autumn Festival, from September 17 to October 7. Accordingly, Vietnamese shrimp exports to China are likely to increase during this period.

Source: Vasep (Translated from the original in Vietnamese)

editorial@seafood.media
www.seafood.media

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