Export from Russian Far East in March 2012 marked by pollock market unpredictability

March 23, 2012 11:34

In the middle of APO season in Sea of Okhotsk, the main harvesting business in Russian Pacific waters, APO HG market is behaving really strange way now, reports www.megafishnet.com.  

It is still unclear what will fillet contracts - both single and double frozen - look like in quantities and in price.  Processors and traders are nervous and follow rumors.  Now they buy raw material at unreasonably high prices, then push the price down, attempting to make a safety margin.  Typical price of 25+ grade is floating between $1,400 and $1,450 for MT.

It is well known that HG price is greatly determined by double frozen fillet price in Europe.  The respective contracts have not been signed as yet - very unusual, and there are rumors that allegedly either Pacific Andes or Nippon Suisan proposed some retail chains fillet at a price equal to HG $1,100-1,150.  Neither processors nor fishermen can accept this level, however the pressure is really strong.  There was some hope that stakeholders (retail chains, processors, catchers) find a solution in Boston, but nothing happened there.

Fishmeal price is stable.  Typical price CFR Busan or China is $1,300+ for protein level 60-62% without registration with Agriculture ministry, and $300 more with it.

Pollock roe auctions have started in Busan, Korea.  High quality roe price reach $13.60 (maximum known for today), though the best producers have not started their sales yet.  Looking at historical records, we see that today level is the highest since 2004.

Pollock milt price went a bit down.  The reason is that Pacific Andes and Polluks simultaneously started to sell large volumes at a price below current market.  Looks like people make friends against somebody.

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