Ecuadorian shrimp prices to China slide further as suppliers cut offers to boost sales
Ecuadorian shrimp prices reached their lowest level since Platts, part of S&P Global Energy, began the assessment as concerns over recent export disruptions to China weighed on sentiment in the week to July 10, domestic traders said.
Platts assessed the Ecuador Shrimp Market at $4,300/metric ton on July 10, down $50/mt week over week, and the lowest since Platts began the assessment Sept. 2, 2024.
The General Administration of Customs suspended import declarations for products shipped on or after June 30 from seven Ecuadorian shrimp processing plants, according to media reports. The list mentions plants operated by some of the biggest shrimp exporters in Ecuador, including Industrial Pesquera Santa Priscila (registration numbers 24887 and 71696), Omarsa (41068) and Songa (56), among others.
Ecuador's National Chamber of Aquaculture (CNA) said in a statement July 9 that they are monitoring restrictions imposed by China on Ecuadorian shrimp-exporting companies and supported the creation of a technical working group between authorities from both countries to address the issue.
A Shanghai-based importer said they were awaiting more clarity and the reason for the import suspension was still unknown, as the GACC has not yet made any public comments on the issue.
The source said it could be related to the higher sodium metabisulfite content in frozen shrimp shipments, adding that China rejected nearly 200 containers of frozen shrimp shipments in May due to higher levels of sodium metabisulfite as the country was tightening its quality compliance norms.
A trader based in Ecuador said they were unaware of the number of containers being returned, but confirmed that "China suspended exports from Omarsa and Santa Priscila, Ecuador's largest shrimp processors."
China market stable
A Mumbai-based trader said such regulatory and compliance uncertainty would support Chinese domestic shrimp prices. Domestic shrimp prices have rebounded in May after falling to record lows in the March-April period, the trader said.
Despite rising compliance pressure in China, the country's frozen shrimp imports in May rose 15% year over year to 85,458 mt, according to the latest GACC data.
The data covers imports of frozen warm-water shrimp under tariff codes 03061730 and 03061790.
Chinese frozen shrimp demand remained robust in May, despite a 9% month-over-month decline, as imports over January-May increased 25% year over year to 429,076 mt, the data showed.