Overview of Moscow's freshfrozen fish market as per fourth week of September 2008

As per the fourth week of September the main attention of the Moscow freshfrozen market players was focused on the developments on the Russian stock market, as the consequences of the crisis were likely to hit the seafood trade as well, analysts of www.fishnet-russia.com  (www.fishnet.ru ) concluded after analyzing the current situation on the market.

More wholesalers have confirmed that fish processors have been facing difficulties in borrowing for raw fish purchases, as https://www.fishnet.ru/ reported earlier, due to dramatically falling value of shares on the Russian market and a threat to liquidity of the Russian banks.

As for the threat to liquidity, the market operators admitted the fact of the rising cost of credit and the increased cost of coldstorage (+40%). In this context, experts have been speculating that the trading companies may tend to reframe from building up inventories preferring direct turnover of the goods. This is likely to influence the volumes of purchases from fleets. The fleets in their turn will be set to trade direct with end consumers of their products seeking more actively short cuts to processors, retail chains and opening up own departments of logistics. Mostly, those traders which have free cash assets will also stay on the market.

As per the fourth week of September the prices trends varied from upward to downward. The situation with prices of salmon was relatively stable, the prices of pelagic species were growing, at the same time the prices of Chilean trout and pangasius fillet declined.

Salmons

As per 22 September 2008 the Russian fishermen covered more than 68% of the salmon quota on Sakhalin island.

Kamchatka-based fishermen harvested more than 100,000 tonnes of salmon species. The commercial fishery has been closed and the quotas have been covered at more than 88%. The local fishermen harvested more than 23,700 tonnes of salmonids out of 33, 000 tonnes of quotas allocated in the East of Kamchatka and more than 80,200 tonnes of salmon species were taken up of 85,500 tonnes of quotas in the West coast of the peninsula.

In the Western and Eastern coast of Sakhalin massive runs of chum salmon began. In Kholmsk region the 24-hour catch volume exceeded 209 tonnes of fish and in Poronaisk 333 tonnes of chum salmon. The total volume of chum salmons in the Sakhalin amounted to more than 1600 tonnes covering almost 10% of the quotas.

In summer and autumn it was allowed to harvest more than 320, 000 tonnes of salmon species in the Russian Far East as a whole. The largest total quota of nearly 148,000 tonnes was allocated to the fishermen of Sakhalin. The TAC in Kamchatka amounted to 135,000 tonnes of fish and the rest of the quota was distributed between Primorye, Khabarovsk, Magadan and Chukotka.

Pink salmon

The prices of frozen pink salmon ex-coldstore on the Moscow fish market stabilized by the end of September and came to reflect the real demand and supply situation.

The w/r silverside pink salmon of first grade varied from RUB66 /10 tonnes+ and head-on and gutted pink salmon of first grade from RUB68 for the same volume of 10 tonnes+.

In the fourth week of September 2008 prices of frozen pink salmon on the Moscow market remained on a par with prices a week ago. The demand in Moscow was stable and the supply is large. More specifically, prices kept fluctuating at RUB65.00-72.00 per kilo. Prices of silverside Kamchatka pink salmon head-on and gutted 1.5+ amounted to RUB67.00-70.00 per kilo. There were also offers of IQF pink salmon fillets 300 at RUB90.00-99.50 per kilo.

Chum salmon

According to market players based in Moscow, the supply of chum salmon was short and as per the fourth week of September 2008 the city's traders kept expecting very small shipments of the product. Consequently, the prices of head-on and gutted chum salmon amounted to about RUB79 - 85 per kilo.

There were offers of IQF head-on gutted chum salmon 2.5-3 from RUB84.00 per kilo. Headed chum salmon was traded from RUB85.00 to RUB95.00 per kilo.

Salmon roe (ikura)

The demand for salted salmon roe (ikura) on the Moscow market remained strong with the wholesale business reported as brisk in the end of September 2008. Suppliers somewhat raised their offer prices of pink salmon roe. The average price of pink salmon roe amounted to about RUB1250 per kilo. The prices offered by big traders varied from RUB1100 to 1300 per kilo, but the price of RUB1100 was getting rare.

The prices of roe of other salmon species also increased. Sockeye roe was marketed from RUB1050 to RUB1300 per kilo. The price of chum salmon roe amounted to nearly RUB1250-1350 per kilo. There were offers of chinook salmon roe at RUB1350 per kilo.

Besides, Moscow traders sold frozen pink salmon roe in sacks from RUB800.00 to 850.00 per kilo and frozen trout roe made in Finland from RUB650.00 per kilo.

Atlantic salmon

As per the fourth week of September the average export price of frozen Atlantic salmon in Norway amounted to NOK 31.52 per kilo, up 5.7% from the previous week price. However, the Russians will normally buy chilled salmon from Norway for processing that results in better quality products and anyway it is less expensive to freeze in Russia.

During the period of the review Moscow traders offered Atlantic salmon of various sizes and quality. Atlantic salmon 1-2 superior originating from Denmark was offered at RUB150.00 per kilo, while the size 3-4 kilos was available at ca.RUB190.00 per kilo.

Chilean salmon 1-2 superior was marketed at RUB130.00 per kilo, while the size 2-3 superior was offered at RUB140.00 per kilo.

Trout

According to Moscow traders, the prices of Chilean trout decreased.

Prices of trout 1.8-2.7 amounted to RUB165-170 per kilo, while the size 2.7-4.0 was marketed at ca.RUB175 per kilo.

The trout 1.8 - 2.7 Superior originating from Norway was marketed from RUB175 - 180 per kilo, while the size 2.7 - 3.6 Superior was marketed at RUB 175 - 185 per kilo.

There were also offers of frozen Danish trout, with prices being on a par with Chilean products.

Chilled products originating from Norway were offered on order at RUB190.00 per kilo.

Herring

According to the market participants, the market faced a shortage of herring of all products both of Russian and foreign origin with the cold store inventories practically absent. In general, the importers offered herring ex-vessel to be landed in Saint Petersburg for direct delivery to the customer so that the stock should not be put for storage.

According to a large trader in Murmansk, the price of the Russian herring kept rising and will likely to achieve the level of RUB22-22.50 per kilo for the herring 200-300 and RUB 28 for the category 300+ in Murmansk.

Notably, this price level less VAT and freight costs came closer to the price of herring for export. In this situation, the further growth of prices (or decreasing of USD rate) it may become more profitable for the fishermen to land herring for domestic market and not for export that would increase supplies to the Russian market.

Herring 200 - 300 originating from Russia, Murmansk delivered from St. Petersburg was offered by Moscow traders at the price RUB22.50-23 per kilo. The size 300+ originating from St. Petersburg, Russia was marketed at RUB27-29 per kilo.

Herring flaps 6-10 made by Murmansk Trawl Fleet stayed at the level of RUB46.00 per kilo.

The Norwegian fishery continued its progress. From 15 to 22 September 32,400 tonnes of herring average size 300 + were harvested. The average price of herring amounted to ca.3.35 NOK/per kilo (USD0.6).

The herring of the new season from Norway was offered at a price RUB28 - 30 per kilo for herring 300+, at a price from RUB39 for 350+ and at a price from RUB48.50 to RUB55 per kilo of the size 400+.

Norwegian herring fillets 6-10 were available at RUB49.00-50.00 per kilo in St. Petersburg.

Mackerel

As http://www.fishnet-russia.com/ (https://www.fishnet.ru/) reported earlier, the situation with mackerel repeated that with herring with the suppliers offering products to be landed in Saint Petersburg.

The price of Russian headed mackerel 200-300 amounted to RUB67 per kilo in Murmansk, RUB68 in St. Petersburg and RUB69 per kilo in Moscow. The volumes of supplies are not large while the prices were stable. The mackerel 300+ was marketed in St. Petersburg at a price RUB94 - 96 per kilo.

The mackerel fisheries in Norway developed. The Norwegian vessels harvested 17,500 tonnes of mackerel of average size 440g in the period of 15 - 22 September 2008. The average price of mackerel amounted to NOK12.37 per kilo (USD2.19).

The shortage of imported mackerel is expected.

Canadian mackerel to be landed in Saint Petersburg was marketed in Moscow from RUB85.00 per kilo of the size 400-600, and from RUB94.00 to RUB115.00 per kilo of the size 600+.

Norwegian mackerel 300-500 was traded at a price about RUB87.00 per kilo, while the size 400 - 600 was available from RUB90.00 - 95.00 per kilo and the size 600+ from RUB125 per kilo landed in St. Petersburg.

According to traders, the shipments of Norwegian mackerel 300 - 500 were expected in Murmansk at a price of RUB62 per kilo, mackerel 400-600 at a price of RUB88 per kilo and the mackerel 600+ at a price of RUB105 per kilo.

Headed mackerel 400 - 600 from Japan was offered in Moscow from RUB77 to 100 per kilo ex-coldstore.

Baltic herring, Baltic sprat

In the fourth week of September 2008 no changes were observed on the Moscow market of Baltic herring and Baltic sprat. There remained a lot of offers of Russian and imported sprat.

More specifically, Kaliningrad sprat was offered at RUB23.50-26.00 per kilo. Estonian and Swedish sprat was sold at RUB21.50-24.50 per kilo. Latvian sprat 9-12 cm was marketed at RUB21.00 per kilo.

Kaliningrad herring 18+ was offered at RUB29.50 - 30.50. Finnish herring was marketed at RUB23.00-26.00 per kilo of the size 12-15 and RUB26.00-32.00 for the size 16-18. Prices of Swedish herring amounted to RUB27.00 per kilo of the size 16+ and RUB30.00 per kilo ex-coldstore of the size 18+.

Swedish herring 14-18 to be landed yet was offered at RUB22.00 - 24.00 per kilo, the size 18+ was available at RUB31.00 per kilo.

Capelin

In the fourth week of September 2008 Moscow traders were trying to meet the demand of processors for small capelin. There had been a shortage of capelin 40 - 50 and 45-55 on the Moscow market. The prices have been growing.

Experts in Murmansk admitted the absence of the Icelandic capelin 40 - 50. Inventories were offered at a price of RUB34 per kilo. In Moscow there occurred offers from RUB37 per kilo.

Norwegian capelin of the count 45/55 per kilo was marketed from RUB36.00 to 39.50 per kilo. There were offers of capelin landed in St. Petersburg at a price of RUB37 per kilo. The capelin size 40-50 was offered at a price about RUB40.00 - 43.00 per kilo.

The Canadian capelin 30-40 per kilo was sold at a price RUB41.00 - 45.00 per kilo.

Blue whiting

As per the fourth week of September 2008, blue whiting prices kept rising in Moscow, according to industry sources. The traders offered blue whiting of March - July season. The new blue whiting fishery is to start not earlier than in November 2008, while about 10,000 tonnes of blue whiting were left in the inventories in Murmansk. The price of the species ex-coldstore in Murmansk amounted to RUB25.00 - 25.50. The prices of the blue whiting of Russian origin in Moscow and St. Petersburg came up slightly and the fish was marketed at a price of RUB26.00 - 28.00 per kilo.

Blue whiting fillets freshfrozen originating from Russia were sold at RUB54.00 to 58.00 per kilo.

More specifically, large importers asked higher prices from RUB26.00 to RUB29.50 per kilo. The average prices of wholesalers fluctuated at ca.RUB27.00 per kilo.

Blue whiting from Ireland was offered at RUB24.00 per kilo. Scottish blue whiting was sold at RUB26.00 - 27.00 per kilo.

Alaska pollock

The situation with the Alaska pollock supply in Moscow remained fairly stable with the sales described as smooth. Alaska pollock prices as per 22 September 2008 remained unchanged as compared to the previous week. More specifically, Alaska pollock 250+ was sold from RUB40.00 to RUB45.00 per kilo, while the sizes 300+ and 350+ were offered from RUB42.00 and at RUB48.00-55.00 correspondingly.

As for APO fillets, the market remained well supplied with double frozen pollock fillets coming from China. In particular, IQF fillets 8+ (220+) slightly appreciated to RUB83.00-85.00 per kilo.

Hake

Due to closure of the hake fishery in the USA and poor catches in Canada, the market showed a shortage of hake imported from the region. In the meantime, the hake supply from the South America was more or less stable.

As per the fourth week of September 2008, hake prices in Moscow were stable or rising. The prices of hake from Canada had come up, while the price of hake products from the South America had been stable.

There were single offers of HGT hake 300-500 from the USA from RUB88.00 to RUB95.00 per kilo.

The Canadian HGT hake 300-500 IQF was marketed at a higher price of RUB88.00 per kilo, while the size 300 - 600 IQF to be landed was sold at RUB90.00 - 100.00 per kilo.

Argentinean interleaved hake 250 - 350 was sold from RUB110.00 per kilo. There were also offers of Argentinean interleaved skinned hake fillets 100-200 at RUB113.00 per kilo and interleaved skinned fillets 200-400 from RUB118.00 to RUB122.00 per kilo.

Skinned freshfrozen hake fillets 170-220 made in China were traded from RUB85.00 per kilo, while the interleaved size 200-250 was offered at RUB110.00 per kilo.

Uruguayan HGT hake was marketed at a price from RUB57 while hake fillets in cubes were sold at RUB64.00-70.00 per kilo.

Squid

Due to a generous harvest of squid in spring 2008 the market was displaying a strong supply of squid harvested in the Russian Far East. Besides, there was an overwhelming supply of cheap ilex squid from Argentina, known as a direct competitor for the Russian magister squid from Komandor subarea. As per the fourth week of September the prices of these two species in Moscow were a par.

Apart from strong supply of squid from the current season there were offers of RUB47.00 per kilo of squid tube produced in October 2007 with the shelf-life extended to December 2008. There were also offers of the squid of the April - May production with the extension of expiry shelf life highly problematic and the sellers were trying actively to sell off the products.

In Moscow prices of squid tubes harvested in 2008 and made by NBAMR have been decreasing and varied from RUB53.00-57.00 per kilo, and there were offers of skinned squid tube made by NBAMR at RUB120.00-125.00 per kilo.

Argentinean cleaned tubes of illex squid were marketed at RUB65.00-77.00 per kilo while the unclean squid tube was marketed at about RUB50 per kilo.

Cleaned tubes made in China depreciated to RUB60.00-75.00 per kilo depending upon the size.

New Zealand squid tubes 200-300 were offered at RUB50.00-55.00 per kilo, Peruvian squid and squid fillets came down and were traded at RUB37.00 per kilo.

Pangasius

As per the fourth week of September 2008, prices of panagasius fillets in Moscow continued to weaken though the trading sources predict the forthcoming growth of prices.

More specifically, minimal price of pink fillets 200+ dropped to RUB58.00 per kilo, while the maximum price amounted to ca.RUB62.00 per kilo.

There were also offers of fillets 600+ at ca.RUB75.00 per kilo. White-colour fillets were sold at RUB89.00-95.00 per kilo.

Moscow traders also offered other pangasius products such as HGT at RUB90.00-95.00 per kilo, steaks at ca.RUB50.00, and fillets in cubes delivered from Lithuania dropped to RUB51.00 per kilo. Thus, the prices of pangasius products varied from RUB51.00 to RUB60.00.

Seller prices in Moscow as per 15 September 2008, RUB per kilo