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

As per the third week of September 2008 certain changes were observed on Moscow's freshfrozen fish market as compared to a week ago. More specifically, there were indications proving that the world financial crisis influenced the seafood market to a certain degree, analysts of http://www.fishnet-russia.com/ (https://www.fishnet.ru/) concluded after analyzing the current situation on the market.

Due to dramatically falling value of shares on the Russian market and a threat to liquidity of the Russian banks, fish processors faced difficulties in borrowing for raw fish purchases.

A spokesman of one large Moscow-based fish company told www.fishnet-russia.com (www.fishnet.ru) that the market participants were closely watching how the situation was developing. In the meantime, Russia's Ministry of Finance and the Central Bank of the Russian Federation announced large injections into the bank system aimed at preventing the liquidity crisis (the trend was reversed on 19 September 2008 thanks to government cash injection).

As per the third week of September 2008, the situation on the Moscow market as compared to the previous week did not change much. The market traders kept tracking developments in the pelagic fisheries.

Salmons

As per 15 September 2008, the Russian fishermen covered 67% of the salmon quota and harvested 82,000 tonnes of pink salmon during the season in Sakhalin. The pink salmon fishery as per mid-September 2008 practically came to an end. Meanwhile, the fleets continued harvesting chum salmon with the result reported at ca.2000 tonnes out of the quota of 20,000 tonnes.

As per early September 2008, Kamchatka-based fishermen harvested more than 100,000 tonnes of salmon species, or 85.4% of the quotas. Rich runs were observed in the west of the peninsula, where the quota take-up exceeded 91%. In the east of the peninsula the quota take-up amounted to 70%.

In mid-September the quotas were completely exhausted only in the Petrovavlosk-Komandor subarea by the fishermen based in the Ust-Kamchatka District.

Pink salmon

In the third week of September 2008 prices of frozen pink salmon on the Moscow market remained on a par with prices a week ago. More specifically, prices kept fluctuating at RUB65.00-70.00 per kilo, though some suppliers did increase their offer prices. Prices of silverside Kamchatka pink salmon head-on and gutted 1.5+ grew to RUB67.00-70.00 per kilo.

There were also offers of IQF pink salmon fillets 300 at RUB89.00-90.00 per kilo.

Chum salmon

In the third week of September 2008 prices of head-on gutted chum salmon from the current year harvest grew to RUB80.00 to RUB84.00 per kilo due to comparatively short supply. In 2008 the supply of chum salmon in Moscow was short and as per 15 September 2008 the city's traders were expecting very small shipments of the product. 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 RUB93.00 per kilo.

Salmon roe

The demand for salmon roe on the Moscow market remained strong with the wholesale business reported as brisk in the middle of September 2008. Suppliers somewhat raised their offer prices of pink salmon roe in cubotainers. More specifically, the average offer prices of pink salmon roe in cubotainers rose to RUB1250 per kilo.

Sockeye roe was marketed from RUB1050 to RUB1200 per kilo. The price of chum salmon roe amounted to ca.RUB1250-1300 per kilo. There were offers of chinook salmon roe at RUB1350 per kilo.

Besides, Moscow traders sold pink salmon roe in sacks from RUB850.00 per kilo and frozen trout roe made in Finland from RUB650.00 per kilo.

Atlantic salmon

As per the third week of September 2008, 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

The supply of frozen Chilean trout on the Moscow market was fairly good. Prices of trout 1.8-2.7 amounted to ca.RUB165.00-170.00 per kilo, while the size 2.7-4.0 was marketed at ca.RUB175.00 per kilo. Trout 1.8-2.7 superior made in Norway was offered at RUB175.00-180.00 per kilo, while the size 2.7-3.6 superior was sold at RUB175.00-185.00 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 RUB170.00 per kilo.

Herring

As per 1 September 2008 Russia's herring harvest amounted to ca.88,000 tonnes, approximately 15,000 tonnes up on the same period last year, with the quota remainder totaling 108,000 tonnes. The industry insiders noticed that if the fishery progressed smoothly, the quota would be harvested by early-mid October 2008. The average daily catch was reported at 2500 tonnes.

Russia's herring catches in the Northeast Atlantic as per 1 September 2008

Source: National Monitoring Centre

According to the market participants, strengthening USD exchange rate made it more profitable for the fishermen to land herring 200-300 for export. Therefore the market faced a shortage of herring of the popular size of 200-300. Prices for the herring were also growing. Herring 300+ originating from Russia was offered at RUB26.00 per kilo. Herring flaps 6-10 made by Murmansk Trawl Fleet slightly appreciated to RUB46.00 per kilo.

As for imported herring, the market players spoke about a shortage of all the herring products on the market 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.

Consequently Moscow companies offered mostly herring to be landed in Saint Petersburg. Herring from the new season in Norway was offered with the stock yet to be landed at prices from RUB28.00 to RUB30.00 per kilo of the size 300+, from RUB39.00 per kilo of the size 350+, and from RUB48.50 to RUB55.00 per kilo of the size 400+.

Norwegian herring fillets 6-10 were available at RUB49.00-50.00 per kilo with the stock yet to be landed.

A small growth of prices was observed for the Russian herring 200-300.

Herring 300+ of the Russian origin was marketed at stable prices at ca.RUB26.00 per kilo. Herring flaps 6-10 made by Murmansk Trawler Fleet were offered at RUB45.00 per kilo.

Mackerel

As per 15 September 2008, the supply of mackerel remained limited in Moscow. According to the market participants, large scale fishery of mackerel in Norway was expected to start some 1-2 weeks later. There were small offers of small-size mackerel.

The situation with mackerel repeated that with herring with the suppliers offering products to be landed in Saint Petersburg.

There were also offers of mackerel from Canada, Norway, Scotland, Iceland and Japan. Canadian mackerel to be landed in Saint Petersburg was marketed in Moscow from RUB85.00 per kilo of the size 400-600, and from RUB100.00 to RUB115.00 per kilo of the size 600+. Norwegian mackerel 400-600 was traded from RUB95.00 per kilo, while the size 600+ was available from RUB125.00 per kilo.

Headed Russian mackerel 200-300 was sold at RUB68.00-69.00 per kilo, while the size 300+ was offered at RUB94.00-96.00 per kilo.

Prices of w/r Icelandic mackerel 300+ caught in August 2008 amounted to ca.RUB80.00 per kilo ex-coldstore in Moscow.

Along with the above, Moscow traders also offered headed Japanese mackerel 400-600 from RUB77.00 to RUB100.00 per kilo.

Baltic herring, Baltic sprat

In the third 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. Finnish herring was marketed at RUB21.00-26.00 per kilo of the size 12-15 and RUB30.00-32.00 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 RUB24.00 per kilo, the size 18+ was available at RUB31.00 per kilo.

Capelin

As per the third week of September 2008, Moscow traders spoke about a certain saturation of the city's market with large-size capelin. The demand for the count of 30/40 was weakening. The processors showed a bigger interest in smaller capelin 44/55, the supply of which was deficient and the prices of which were on the rise. The market players were offering mostly Canadian capelin at stable or slightly rising prices, namely at RUB41.00-45.00 per kilo of the count 30/40.

Besides, Moscow wholesalers offered Norwegian capelin 45/55 from RUB36.00 to RUB39.50 per kilo, while the counts 40/50 and 30/40 were traded at ca.RUB43.50 and RUB45.50 per kilo correspondingly.

Blue whiting

As per the third week of September 2008, blue whiting prices kept rising in Moscow. The prices both of Russian and imported products were practically equal.

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.

Russian blue whiting fetched ca.RUB23.00-26.00 per kilo in Moscow. Blue whiting from Ireland was offered at RUB24.00 per kilo. Scottish blue whiting was sold at RUB27.00 per kilo. Besides, wholesalers marketed blue whiting loins at RUB48.00-49.00 per kilo of the Russian product.

Alaska pollock

The situation with the Alaska pollock supply in Moscow remained fairly stable with the sales reported as smooth. Alaska pollock prices as per 15 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 third week of September 2008, hake prices in Moscow were stable or rising. There were single offers of HGT hake 300-500 from the USA from RUB88.00 to RUB95.00 per kilo.

Canadian HGT hake 300-500 IQF was marketed at RUB80.00 per kilo, while the size 500+ was sold at RUB85.00 per kilo.

Argentinean interleaved hake was sold at RUB102.00-106.00 per kilo (fillets were available at RUB110.00-140.00 per kilo). There were also offers of Argentinean interleaved skinned hake 100-200 at RUB120.00 per kilo and interleaved skinned 200-400 from RUB118.00 to RUB122.00 per kilo.

Skinned hake fillets 120-200 made in Spain were traded at RUB110.00 per kilo, while the size 200-400 was offered at RUB115.00 per kilo.

The supply of Chinese hake increased with skinned hake fillets 170-220 originating from China sold at RUB85.00 per kilo and skinned interleaved fillets 200+ offered from RUB90.00 per kilo.

Uruguayan hake was offered in the form of fillets in cubes at RUB64.00-69.00 per kilo.

Squid

As per 15 September 2008, the situation on the squid market in Moscow was fairly difficult. 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. A spokesman of one large Moscow company said that as the shelf life of squid from the spring harvest was coming to an end and extension of the shelf life was fairly problematic, sellers were actively trying to sell off the products.

Besides, there were offers of squid tubes harvested in October 2007 by Akros at RUB47.00 per kilo with the product's shelf life extended till December 2008.

One market participant told www.fishnet-russia.com (www.fishnet.ru) that they had to agree on bid prices and bear losses.

In Moscow prices of squid tubes harvested in 2008 and made by NBAMR amounted to ca.RUB53.00-57.00 per kilo, and there were offers at RUB52.00-53.00 per kilo. Besides, Moscow traders also offered skinned tubes 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. Cleaned tubes made in China depreciated to RUB65.00-70.00 per kilo.

New Zealand squid tubes 200-300 were offered at RUB50.00-55.00 per kilo, Peruvian squid and squid fillets were traded at RUB40.00 per kilo.

Pangasius

As per the third week of September 2008, prices of panagasius fillets in Moscow continued to weaken due to a surplus supply of raw pangasius in Vietnam a couple of months ago.

More specifically, the minimum price of pink fillets 200+ dropped to RUB58.00 per kilo, while the maximum price amounted to ca.RUB65.00 per kilo.

There were also offers of fillets 600+ at ca.RUB75.00 per kilo. White-color fillets were sold at RUB90.00-95.00 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 at ca.RUB65.00 per kilo.

Average prices in Moscow as per 15 September 2008

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