Seasonal Fluctuation in Chinese Market and Price Rise of Imported Frozen Shrimp

As week 37 begins, shrimp prices continue to rise in Andhra Pradesh, India's main shrimp farming state, reaching their peak prices in the past 16 weeks for all sizes of shrimp.  Behind this round of price increases is the double challenge of heavy rains and disease outbreaks, which together disrupted the first harvest of the season, resulting in reduced market supply and rising prices. 

The Indian shrimp industry is closely watching developments in its largest single market, the United States.  As Christmas approaches, US market demand is expected to pick up, which undoubtedly brings good news for Indian white shrimp exports.  It is widely expected that the increase in US purchases will further stabilize and push up the price of Indian white shrimp, bringing more solid market security to Indian shrimp farmers and exporters. 

However, China, one of the world's largest consumer markets for aquatic products, presents a very different picture.  Recently, China's domestic live shrimp market has experienced seasonal price declines.  As the main producing area of white shrimp in China, the price of live shrimp in Guangdong declined significantly, while Guangxi, Shandong, Jiangsu and other places were not spared, and the price generally fell.  This phenomenon is mainly attributed to the impact of typhoons, leading to shrimp farmers in the typhoon concentrated on the listing, short-term market oversupply, price pressure. 

Although the domestic live shrimp price is depressed, but the imported frozen shrimp market has ushered in a price rise tide.  Due to the low winter temperature in Ecuador, it is expected that the output of white shrimp will be affected to some extent by the end of the year. This news was quickly transmitted to the Chinese market, triggering a general rise in the price of imported frozen shrimp.  The turnover speed of major wholesale markets has accelerated significantly, and major cold storages are preparing for delivery in order to cope with the upcoming Mid-Autumn Festival and the peak consumption season at the end of the year. 

It is worth noting that the Mid-Autumn Festival, as an important traditional festival in China, has always been the peak period of seafood consumption.  As the festival approaches, domestic consumers 'demand for high-quality seafood will continue to grow, which provides a broad space for the development of the imported frozen shrimp market.  At the same time, seasonal adjustment of domestic live shrimp market also provides more market opportunities for imported frozen shrimp.