Overview of Moscow's freshfrozen fish market as per third week of October 2008

As per the third week of 2008 the Moscow freshfrozen seafood market has been marked by a persistent moderate activity, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

More specifically, the market participants have been facing slack sales. The current world financial crisis has made many Russian companies to reconsider their business strategy. In particular, the nation's importers began purchasing fish in relatively small consignments so as not to build up inventories, but rather sell it immediately towards brisker turnover. Most of the companies switched to 100% prepayment and avoided delay payments.

According to an informed industry insider, by the beginning of the second half of October 2008 commercial banks resumed financing processors' fish purchases with the average interest rates from 18% to 22% per annum. Due to higher cost of bank loans and some other factors, market participants are expecting a general rise of product prices in the short term outlook.

In the meantime, larger cash inflow in the raw fish business has triggered normalization of saury, pollock and pink salmon shipments from the Russian Far East which were practically suspended in the first ten days of October 2008.

Besides, the RFE traders have noted a certain decrease of costs for railway transportation in reefer sections. Some market participants have decided to wait for a further reduction of the charges. Probably, that factor may tell on prices for RFE products in the short term.

As per the third week of October 2008 the seafood market of Moscow and other regions of European Russia was showing a rise of prices for practically all the products, especially, for pollock and capelin, as well as a certain drop of prices for herring.

Pink salmon

As per the third week of October 2008 the situation on Moscow's pink salmon market remained calm. There was a growth of pink salmon prices at ports in the Russian Far East to RUB57.00 per kilo, however so far such local growth did not receive a positive response due to large simultaneous arrivals of such products to the cold stores of Moscow and the surrounding region.

The average price of frozen pink salmon remained at RUB70.00 per kilo for the lots from 10, 20 tonnes ex-coldstore for high quality products.

In Moscow w/r pink salmon silverside was offered from RUB69.00 per kilo for the lots from 10 tonnes, 1st graded head-on gutted pink salmon was traded from RUB70.00 per kilo on the same terms.

Prices of 1st grade pink salmon headed and gutted amounted to RUB90.00 per kilo for the lots from 10 tonnes ex-coldstore in Moscow.

Pink salmon fillets skin-on IQF 300 grams were available at RUB95.00-112.00 per kilo.

Chum salmon

According to the market participants, as per the third week of October 2008 in chum salmon was also moderate. There were inventories of chum salmon harvested in the Amur River and Sakhalin at ports of Vanino, Nakhodka and Vladivostok. Taking into account the unsteady quality of the Sakhalin chum, the traders were expecting a small drop of prices for chum salmon caused by a low demand for chum salmon in the European Russia. Prices for chum salmon head-on and gutted amounted to ca.RUB82.00-85.00 per kilo ex-coldstore in Moscow.

As per the third week of October 2008 chum salmon headed was offered from RUB85.00 to RUB95.00 per kilo. There were also offers of headed chum salmon harvested in 2007 from RUB77.00 per kilo.

Salmon roe

According to a spokesman of a large fish company, as per the third week of October 2008 the financial crisis had practically no effect on sales of delicatessen products such as salmon caviar, crabs and scallops. As caviar belongs to premium segment, buyers continued purchasing high quality salmon caviar in the volumes remaining stable.

As per the third week of October 2008 large suppliers sold salted caviar in cubotainers from RUB1400 to 1500 per kilo in Moscow.

Canned salmon caviar was offered by Moscow processors at RUB190.00-200.00 per 140-gram can. Large processors were offering the product from ca.RUB170.00 per can. Salmon caviar in 100-gram glass jar was traded from RUB150.00 per can.

Prices of caviar of other salmon species in Moscow stopped rising and got stabilized. In particular, sockeye caviar was available in the capital from RUB1400.00 per kilo.

Chum salmon caviar fetched ca.RUB1400.00 per kilo.

In the third week of October 2008 Moscow traders also offered chinook salmon caviar from RUB1450.00 per kilo.

Caviar of coho salmon harvested in Kamchatka was marketed at ca.RUB1400.00 per kilo as well.

There were also offers of frozen pink salmon caviar in sacks from RUB800.00 to RUB850.00 per kilo.

Atlantic salmon

During the period under review Moscow traders offered frozen Atlantic salmon of various sizes and quality, mainly from Norway and Denmark at relatively stable prices.

Meanwhile, the prices of frozen Atlantic salmon from Chile started growing as the supplies from this country decreased.

Traders reported about a lower supply of small sizes and a higher supply of large sizes.

On Moscow market the Atlantic salmon 1-2 superior originating from Norway was offered from RUB170.00 per kilo, while the sizes 5-6, 6-7, 7-8, 8-9 and 9+ were correspondingly offered from RUB240.00, RUB225.00-245.00, RUB226.00-RUB248.00, RUB250.00 and RUB251.00 per kilo.

Chilean salmon 2-3 premium was marketed from RUB160.00 per kilo, while the sizes 5-6 and 6-7 were traded from RUB210.00 and RUB212.00 per kilo respectively.

Trout

According to Moscow market participants, the supplies of frozen Chilean trout have been stable. The prices of this item have been relatively growing.

Prices of trout 1.8-2.7 remained unchanged with the minimal level of RUB177.00 per kilo and the highest level of RUB190.00 per kilo, while the size 2.7-4.0 was marketed at RUB176.00-185.00 per kilo.

Trout 1.8-2.7 Superior and 2.7-3.6 Superior both originating from Norway fetched from RUB180.00 per kilo.

Chilled products from Norway were offered on order from RUB180.00-185.00 per kilo.

Karelian chilled trout was marketed from RUB110.00 to RUB140.00 per kilo. However, fishery insiders said that farmers started to slaughter trout and prices of the product were already falling.

Herring

During 14-21 of October 2008 the total herring catch in Norway exceeded 38,200 tonnes with the average size of the fish ca.300g. The prominent part of the harvested fish was sold for human consumption at an average price of NOK3.29 per kilo.

According to Moscow market participants, the situation with the herring shipments was improving.

As per the third week of October 2008 there was a clear trend of decreasing prices for the Norwegian herring 350+. The prices of herring 200-300 and 300+ originating from Russia remained stable.

Russian herring 200-300 was offered ex-coldstore in Saint Petersburg from RUB22.00 per kilo, while the sizes 250+ and 300+ were available from RUB23.00 and RUB29.00 per kilo correspondingly.

Poorly graded and classified as large and fat herring was marketed at stable prices from RUB22.00 per kilo. Norwegian herring (in transit to coldstore) was offered in Saint Petersburg from RUB26.00 per kilo of the size 200-300, from RUB30.00 for the size 300+, from RUB37.00-41.00 per kilo of the size 350+, and from RUB 48.50-RUB55.00 for the herring 400+. Norwegian fresh frozen herring fillets 6-10 were available at RUB45.00-55.00 per kilo in St. Petersburg.

Mackerel

The mackerel fishery in Norway has continued. During 14-21 October 2008 the Norwegian vessels fished more than 16,800 tonnes of mackerel average size 435 grams. All the fish harvested was sold for human consumption at an average price NOK 11.92 per kilo.

According to foreign sources, the size of harvested mackerel has been growing. The average weight of harvested fish has been recorded at 440-450 grams. The output has amounted to ca.60,000 tonnes of products.

The Japanese experts say that Norway still has about 40,000 tonnes of products in its coldstores, while 20,000 tonnes have been exported to Russia. Some experts forecast that exportation of the remaining volume to Russia, Africa and the Middle East may face problems connected with payment delays and cancellation of contracts due to the continuing financial crisis.

The minimum price of the Norwegian mackerel 300-500 in Saint Petersburg went down to RUB64.00 per kilo. The average prices amounted to ca.RUB70.00. The size 400-600 was marketed from RUB88.00-97.00 per kilo, while the size 600+ was traded from RUB120.00 per kilo/

The Canadian mackerel 300-500 delivered in St. Petersburg was available at a price RUB66.00 per kilo, the mackerel 400-600 was marketed at RUB80.00-90.00 per kilo. The mackerel 600+ was offered in Moscow at RUB105 per kilo ex-coldstore.

There were also offers of mackerel 400-600 from Ireland at a price of RUB83.00-84.00 per kilo. The headed mackerel 200-400 produced in Scotland was available in St. Petersburg at RUB84.00 per kilo ex-coldstore. The size 400-600 was offered from RUB90.00 per kilo.

The Japanese headed mackerel 400-600 was marketed ex-coldstore in Moscow from RUB77.00-100.00 per kilo.

The price of headed Russian mackerel 200-300 amounted to RUB67.00 in Murmansk, at RUB68.00-72.00 in St. Petersburg and at RUB69.00 per kilo in Moscow. The supply has not been large while the prices have been stable.

Baltic herring, Baltic sprat

As per the third week of October 2008 the frozen Baltic herring and sprat market displayed mixed price dynamics.

More specifically, Estonian sprat 10-12 cm yet in transit was sold at RUB21.50 per kilo. Swedish sprat 10-12 cm was available ex-coldstore in Moscow from RUB24.80 per kilo. The same product yet in transit to coldstore was marketed at RUB23.00 in St. Petersburg.

As for Baltic herring, there was a slight weakening of prices for small sizes against a rise of prices for large sizes.

Finnish herring was marketed in Saint Petersburg from RUB19.50 per kilo of the size 11-15 and RUB26.00-32.00 for the size 16-18. Swedish herring 14-18 was offered at RUB24.80 per kilo in Moscow, the size 18+ was available at RUB32.00 per kilo ex-coldstore.

Capelin

As per the third week of October the capelin market both in Moscow and Saint Petersburg was displaying a lack of supply, especially small size capelin 40/50, 45/55 per kilo.

According to a spokesman of a large fish company, the coldstore inventories were sold out, and new shipments were not coming.

Canadian capelin 30/40 appreciated to RUB47.00 per kilo ex-coldstore in Moscow. In Saint Petersburg the price ex-coldstore went up to RUB45.00 per kilo.

Large Norwegian capelin 25/35 was offered from RUB45.00 per kilo ex-coldstore.

Blue whiting

According to industry sources, the situation on blue whiting market has been unclear. The supply of the blue whiting of Russian origin has been quite limited. There have been offers of the item harvested in May-June while the demand for imported products has been rather small. There have been offers of blue whiting from Norway, Scotland.

The blue whiting backs produced by Murmansk Trawl Fleet was offered at RUB42.00-48.00 per kilo ex-coldstore.

Blue whiting of the Russian origin was offered from RUB25.00-27.00 per kilo in Murmansk, at the level of ca.RUB28.00 - 29.00 per kilo in St. Petersburg and at RUB30.00 per kilo in Moscow. Large importers asked from RUB26.00 to RUB29.50 per kilo. The majority of wholesalers offered the blue whiting at an average price of RUB27.00 per kilo.

Scottish blue whiting was offered at RUB26.00-28.00 per kilo.

There appeared offers of blue whiting fillet cubes originating from China at a price of RUB68.00 per kilo.

Russian pollock

As per the third week of October 2008 the Moscow traders spoke about a continuing rise of prices of Russian pollock in the Far East. The prices of pollock in Moscow have also increased, namely many suppliers offered their products at a price increased by around a further RUB2.00 per kilo.

The pollock 25+ was sold from RUB46.00 per kilo, the Alaska pollock 30+ was marketed from RUB48.00 per kilo while pollock 35+ was offered at RUB50-52 per kilo. Traders said they faced a certain lack of the pollock supply and new landings.

As for APO fillets, the market remained well supplied with double frozen pollock fillets coming from China. There were offers of skinned APO fillets IQF 6-8 (180g) and 8+ (220+g). The average price of APO fillets 6-8 amounted to RUB70.00-75.00 per kilo. In particular, IQF fillets 8+ (220+) amounted to ca.RUB75.00 per kilo.

Hake

As per the third week of October 2008, the situation with hake supplies remained difficult. The supply of Canadian and US hake remained short, while prices were moving neither up nor down.  The prices of hake from South America were stable.

HGT hake 300-500 from the USA appreciated to RUB95.00-99.00 per kilo in Moscow.

Canadian HGT hake 300-500 IQF was offered from RUB88.00 to 98.00, while the hake 300-600 IQF was marketed from RUB90.00 to RUB100.00 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, as well as hake 400+ was marketed from RUB126.00 per kilo.

Skinned freshfrozen hake fillets 170-220 made in China were traded at 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. The hake from Ecuador 80-100 was offered at a price from RUB72.00, while the size 100-200 at a price from RUB74.00 per kilo, as well as hake 400-600 was marketed from RUB86.00 per kilo.

Squid

As per the third week of October 2008, there was a slight decrease of squid prices in Moscow.

More specifically, in the capital the minimum price of squid tubes harvested in 2008 and made by NBAMR came down to RUB50.00 per kilo, while the maximum price amounted to ca.RUB57.00 per kilo.

Squid made by another big Russian producer Akros was offered by the company's Moscow subsidiary from RUB50.00 per kilo. Squid tentacles were offered from RUB38.00 per kilo.

There were offers of skinned squid tubes made by NBAMR at RUB110.00-125.00 per kilo, skinned wings of squid were marketed at RUB81.00 per kilo, squid rings were offered at RUB118.00 per kilo and the squid salad mix was available at RUB91.00 per kilo.

Argentinean cleaned tubes of illex squid were marketed at RUB60.00-77.00 per kilo while unclean squid tubes depreciated to RUB43.00 per kilo.

Cleaned tubes made in China were offered at 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

In 2008 Russia's imports of Vietnamese pangasius have been actively growing. More specifically, in January-September 2008 Russia imported 97,322 tonnes of pangasius catfish, 249.6% up on last year.

As per the third week of October 2008, the situation on Moscow's market remained practically unchanged. In particular, the minimum price of pink fillets 200+ in Moscow amounted to RUB58.00 per kilo, while the maximum price jumped to RUB69.00 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 kept fetching RUB51.00 per kilo. Thus, the prices of pangasius products varied from RUB51.00 to RUB60.00.

Average prices in Moscow, dateline 20 October 2008

Seller prices in Moscow as per 20 October 2008, RUB per kilo