Weak China Demand Is the Main Cause of Ecuador's Shrimp Price Drops

Recently, Ecuador's South American white shrimp farming industry has been challenged by a sharp drop in prices, mainly due to a significant decline in demand in China after the Spring Festival.  According to industry sources, Ecuadorian tangtou prices fell sharply last week after staying high for two months, with prices of white shrimp of all sizes falling to varying degrees. 

Data show that the price of 20/30 white shrimp per kilogram fell from 5.00/kg to 4.60/kg, a significant decline.  Larger sizes of 30/40,40/50 and 50/60 white shrimp prices also fell to varying degrees.  Even small-sized shrimp, although the decline is relatively small, but not spared. 

Ecuadorian industry insiders expressed concern about this, saying that the market outlook for 2025 is challenging.  In addition to the uncertainty of the domestic market, the weakness of China demand has brought great pressure to Ecuador's shrimp industry.  During the Spring Festival, although the demand in the China market rose somewhat, it fell rapidly after the festival, making it difficult to maintain the price of shrimp in Ecuador. 

Wholesale prices for Ecuadorian shrimp have not risen since mid-December and have continued to decline after the Spring Festival, according to a northern importer.  Frozen shrimp inventory turnover days also increased from 45 days to 68 days, indicating weak market demand. 

According to full-year data, China imported 916,000 tons of frozen shrimp products in 2024, down 7 per cent from the previous year.  Ecuador, the largest source of imported shrimp, also saw its imports fall by 4 per cent year-on-year.  This trend has undoubtedly exacerbated the plight of Ecuador's shrimp industry. 

Faced with this dilemma, Ecuador's shrimp industry needs to actively respond to market changes and find new growth points.  At the same time, strengthen communication and cooperation with China and other importing countries, understand the changes in market demand, so as to better adjust production and export strategies.  Only in this way can we be able to remain invincible in the fierce market competition.