Overview of Moscow's freshfrozen fish market in the fourth week of November 2008

In the fourth week of November 2008 the Moscow freshfrozen seafood market has been marked by a brisker demand and an excitement of trade in several product items, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

Despite pessimistic mood caused by continuing crisis, the market activity has retained positive dynamics in the period before the New Year. Many traders speak about rising purchases of their customers and growing prices for a number of products.

Magister squid has considerably appreciated both in Moscow and in the Russian Far East. Besides, there has been a large rise of pollock prices. As for imported products, the importers speak about a growing pressure of strengthening USD. The exchange rate of RUB to USD has greatly decreased and experts forecast that the rate may reach RUB30.00 per USD by the end of the year. The development cannot but tell on prices because ca.80% of payments for imported products are carried out in USD.

The importers and traders keep arguing about who is to be blamed for the collapse of the market of the Vietnamese pangasius fillets. Evidently, after selling off the inventories at extremely low prices, the importers will have to reconsider their purchasing strategy in order to avoid the same situation in the future. According to some European analysts, only importers can change the situation for the better via making long-term contracts with reliable successful processors with prices fixed for 12 months. In this case processors can give the farmers their guarantees as to volumes of fish purchases and steady prices. There will hardly ever be as low prices for pangasius as they have been as per the fourth week of November 2008, experts say.

As for other events affecting the fish importers, processors and wholesalers, Sberbank (Savings Bank of the Russian Federation) has announced a stricter approach as to evaluation of creditors' solvency which is to complicate getting new loans for the majority of companies. Besides, Central Bank of Russia has expanded the limits of possible fluctuations of the USD and Euro by still further RUB0.30 up and down.

According to a statistics survey, many consumers have started saving on food products and first of all on meat and fish delicatessen. In particular, 49% from 800 respondents have begun purchasing fewer fish delis. However, some importers think that the crisis has touched upon only poor people, while the rich will continue eating high quality expensive fish.

Pink salmon

In the fourth week of November 2008 the situation on Moscow's pink salmon market has remained stable. Traders report a steady demand for the product without any considerable changes observed on the market.

In Moscow 1st graded w/r pink salmon silverside has been offered from RUB68.00 per kilo for the lots from 10 tonnes, 1st graded head-on gutted pink salmon has been traded from RUB68.00 per kilo on the same terms.

Prices of 1st grade pink salmon headed and gutted amount to RUB87.00-90.00 per kilo for the lots from 10 tonnes ex-coldstore in Moscow.

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

Some importers have been offering American headed pink salmon 1+ in transit to coldstore from RUB95.00 tonnes in Saint Petersburg. According to a spokesman of one large company in the Russian Far East, sales will depend on the product quality. It is important the importers should import pink salmon with bright color meat rather than saving money on presenting "worn out" American salmon as the 1st grade product. If the quality and the meat are acceptable, by February 2009 trade in this salmon is forecasted to be brisk.

Chum salmon

According to the market participants, in the fourth week of November 2008 trade in chum salmon has been moderate. Prices for 1st grade head-on and gutted chum salmon harvested in Kamchatka have amounted to ca.RUB77.00-80.00 per kilo ex-coldstore in Moscow.

Headed chum salmon with spawning changes has been offered from RUB60.00 to RUB75.00 per kilo.

IQF chum salmon fillets (with <5% glazing) made in Kamchatka has been traded ex-coldstore in Moscow from RUB105.00 per kilo.

Salmon roe

As per the fourth week of November 2008 prices of salmon roe have got stabilized without any downward trends observed. Those suppliers who have been trading at higher prices, now have to adjust them taking into account the general level.

In the fourth week of November 2008 large suppliers have been selling salted caviar in cubotainers from RUB1200 to 1350 per kilo in Moscow.

Despite a decrease of prices of raw material canned salmon caviar has not depreciated in Moscow. The capital's wholesalers have been getting ready for the New Year holidays. The average level of prices for 140-gram can amounts to ca.RUB180.00. Price-lists of many wholesalers display large fluctuations of product prices depending on producer and used raw. More specifically, canned salmon caviar in 140-gram cans has been offered from RUB160.00 to RUB240.00 per unit. Large processors have been offering the product from ca.RUB175.00 per can. Salmon caviar in 100-gram glass jar has been traded from RUB150.00 per can.

Prices of caviar of other salmon species in Moscow have declined by RUB100.00 per kilo on the average. In particular, sockeye caviar has been available in the capital from RUB1200.00 per kilo.

Chum salmon caviar has fetched ca.RUB1300.00 per kilo subject to sales in cubotainers.

Traders have been also offering Chinook caviar from RUB1350.00 per kilo.

Caviar of coho salmon harvested in Kamchatka has been marketed at ca.RUB1250.00 per kilo.

Along with the above, the traders have also started offering frozen sockeye, coho and pink salmon roe in sacks from the new harvest from RUB750.00 per kilo.

Atlantic salmon

In the fourth week of November 2008 prices for frozen Atlantic salmon in Moscow have not changed displaying no fluctuations. The market supply in products originating from Norway, Denmark, Chile and Faroe Islands has been fairly good. The wholesalers have been waiting for a rise of demand for the delicatessen products before the New Year.

In Moscow Atlantic salmon 1-2 Superior made in Norway has been on sale from RUB170.00 per kilo, while the sizes 5-6, 6-7, 7-8, 8-9 and 9+ have been correspondingly offered from RUB240.00, RUB225.00-245.00, RUB226.00-RUB248.00, RUB250.00 and RUB251.00 per kilo.

Chilean salmon 1-2 premium has been marketed from RUB130.00 per kilo, while the sizes 2-3, 3-4, 4-5, 5-6 and 6-7 have been traded from RUB160.00, RUB200.00, RUB208.00, RUB205.00 and RUB208.00 per kilo respectively.

Frozen salmon bellies 3+ originating from Chile have been marketed in Moscow from RUB158.00 per kilo.

Atlantic salmon 1-2 made in Denmark has been traded in Moscow at about RUB150.00 per kilo.

Traders have been also offering headed Australian salmon 2.5 at ca.RUB64.50 per kilo.

Chilled Atlantic salmon 5-6, 6-7 has been offered on request by many traded already from RUB185.00 per kilo.

Trout

In the fourth week of November 2008 Moscow's market of frozen trout has been showing no changes just like the market of frozen Atlantic salmon. The situation has been calm.

Prices of Chilean trout have remained at RUB172.00 per kilo of the size 0.9-1.8, RUB178.00-182.00 per kilo of the size 1.8-2.7, and from RUB188.00 per kilo of trout 2.7-4.0.

As per the fourth week of November, prices for Chilean trout 1.8-2.7 have rose to RUB175.00 per kilo, while the size 2.7-3.6 has been offered from RUB188.00 per kilo and the size 3.6-4.5 has been available from RUB203.00 per kilo.

Danish trout 0.9-1.8 and 2.7-4.0 has been sold from RUB165.00 and RUB185.00 per kilo correspondingly.

In Moscow large wholesaler has been offering chilled trout farmed in Karelia at prices rising to RUB168.00 per kilo of the size 0.9-1.8.

Chilled trout farmed in Karelia has been marketed from RUB130.00 to RUB140.00 per kilo.

Chilled products from Norway have been sold on request by a large supply from RUB155.00 per kilo of the size 3-4, head-on and gutted.

Herring

In the fourth week of November 2008 the market participants have been reporting a stable situation with a certain downwards trend.

Norwegian herring has been offered in Moscow from RUB30.50 per kilo of the size 300+, RUB34.00 per kilo of the size 350+, and from RUB47.00 per kilo of the size 400+.

Norwegian herring flaps 5-8 have been offered ex-coldstore in Moscow from RUB50.00 per kilo, while the count 6-10 has been on offer from RUB48.00-51.00 per kilo.

Besides, traders have also been marketing Icelandic herring fillets 6-10 harvested in September-October 2008 in transit to coldstore in Murmansk at a price of ca.RUB50.00 per kilo, while the size 4-8 has been available at ca.RUB53.00 per kilo.

In the fourth week of November 2008 prices for the Russian herring have remained stable. More specifically, Russian herring 200-300 has been offered ex-coldstore in Saint Petersburg from RUB23.00 per kilo, while the sizes 250+ and 300+ are available from RUB23.00 and RUB30.00 per kilo correspondingly.

Poorly graded herring classified as large and fat has been marketed from RUB23.00 per kilo.

Prices of Okhotsk herring of the standard size 25+ have remained at RUB18.00-19.00 per kilo. Traders continue forecasting a further decrease of wholesale prices to RUB16.00-17.00 per kilo..

Mackerel

As per the fourth week of November 2008 the mackerel fishery in Norway has been finished. The total harvest of large trawlers through the season amounts to 78,368 tonnes out of allowed 79,550 tonnes thus displaying a quota take-up of 98.5%. The total catch including those with purse seines and long line gear has amounted to 116,922 tonnes out of allocated 120,450 tonnes or 97%.

At first, Russia's purchases of mackerel were fairly active, but they began declining after the financial crisis took off and the RUB exchange rate weakened. These developments have resulted into a drop in prices.

In the fourth week of November, after a small decrease, prices both for the Russian and imported mackerel have stabilized. The supply of mackerel of all the sizes has been fairly large.

Norwegian w/r mackerel has been offered by many market participants in Saint Petersburg at following prices: RUB64.00-68.00 per kilo of the size 300-500, RUB83.00-92.00 per kilo of the size 400-600, and from RUB120.00 per kilo of the size 600+.

Icelandic mackerel 300+ has been offered ex-coldstore from RUB60.00 per kilo in Saint Petersburg and from RUB62.00 per kilo in Moscow.

Canadian mackerel 300-500 delivered in St. Petersburg has been available at a price RUB66.00 per kilo, the mackerel 400-600 has been marketed at RUB78.00-85.00 per kilo.

Scottish mackerel 400-600 has been available in St. Petersburg at RUB83.00-85.00 per kilo ex-coldstore. The size 600+ has been offered from RUB125.00 per kilo and the size 300-500 has been marketed at RUB60.00 per kilo.

The price of headed Russian mackerel 200-300 has amounted to RUB66.00 in Murmansk, RUB68.00-72.00 in St. Petersburg and RUB73.00-74.00 per kilo in Moscow.

Baltic herring, Baltic sprat

The situation on the market of Baltic sprat has displayed no changes as per the fourth week of November 2008, while prices of Baltic herring have displayed slight decreases.

More specifically, Estonian sprat 10-12 cm in transit to coldstore has been sold at RUB21.50 per kilo in Saint Petersburg. The same product has been offered at about RUB25.00 per kilo ex-coldstore in Moscow.

Swedish sprat 10-12 cm has been available ex-coldstore in Moscow from RUB24.00-25.00 per kilo. The same product in transit to coldstore has been marketed at RUB23.00 in St. Petersburg.

Finnish herring flaps have been marketed in Moscow from RUB35.00 per kilo. Swedish herring 14-18 has been offered at RUB24.80-25.00 per kilo in Moscow, the size 18+ is available at RUB32.00 per kilo ex-coldstore.

Capelin

In the fourth week of November 2008 the situation on the capelin market has remained calm.

One large importer has been offering capelin 30-40 originating from Iceland and Canada ex-coldstore in Moscow at prices set at RUB42.00 per kilo.

Norwegian small capelin 40-50 and 55-65 has been offered ex-coldstore in Saint Petersburg from RUB52.00 per kilo.

Russian capelin has been marketed ex-coldstore in Murmansk at RUB38.00-41.00 per kilo. Besides, Russian traders have offered small capelin 60-70 from the new harvest from RUB34.00 per kilo ex-coldstore in Murmansk.

Blue whiting

In the fourth week of November 2008 no considerable changes have been observed on the blue whiting market. In Murmansk traders have kept offering blue whiting 20+ ex coldstore at RUB22.00 per kilo. In Saint Petersburg prices have been stable at RUB24.00-26.00 per kilo, while in Moscow the average prices have been reported at ca.RUB30.00 per kilo.

Offer prices for blue whiting from the harvest of June-July have increased to RUB25.50 per kilo ex regional coldstore.

Large importers have been asking from RUB26.00 to RUB29.50 per kilo of blue whiting. The average price charged by most of the wholesalers has been fluctuating at RUB27.00 per kilo.

Scottish blue whiting has been offered ex-coldstore in Moscow and the surrounding region at RUB26.00-28.00 per kilo.

Norwegian blue whiting has been offered in Saint Petersburg at RUB24.50 per kilo.

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

Blue whiting fillets have been offered ex-coldstore in Saint Petersburg from RUB40.00 per kilo.

Traders have also launched sales of blue whiting fillet cubes originating from China at a price of RUB68.00 per kilo. Along with the above, wholesalers have been also offering 100% blue whiting mince made in Saint Petersburg at RUB30.00 per kilo.

Russian pollock

In the fourth week of November 2008 the situation on the pollock market has been interesting. Headed and gutted pollock has been showing stable price rise and evidently slightly positive trend has persisted. Traders explain that by seasonal rise of demand thanks to which even decreased cost of railway transportation has not told on prices.

However, several importers say that despite a decline of purchases of raw pollock by the Chinese processors, double-frozen pollock fillets made in China have been depreciating. Probably, it can be attributed to growing number of repudiations from previously ordered containers by a number of importers and emergence of non-contracted and non-sold products both at sea and in transit.

As per the fourth week of November 2008, pollock has been traded in Moscow from RUB50.00 per kilo of the size 25+, from RUB55.00 per kilo of the size 30+, and at RUB55.00-57.00 per kilo of the size 35+. There are offers of pollock fillets ex-coldstore in Moscow region at RUB87.00-89.00 per kilo of skin-on product and at RUB90.00-91.00 per kilo of skinned product.

As for double frozen products originating from China, Moscow traders have a fairly large supply of fillets 6-8 and 8+ on offer. The lowest price of pollock fillets 6-8 have dropped to ca.RUB67.00 per kilo, while the size 8+ has depreciated to RUB68.00 per kilo at the minimum.

Subject to prepayment the products are marketed from RUB65.00 per kilo in transit to port of Saint Petersburg.

Hake

In the fourth week of November 2008 prices of Canadian hake have started weakening. American hake continues coming into Russia, but the product remains more expensive than Canadian hake. The demand for the product has been stable.

In Argentina due to weak fishery the harvest has been very limited and the supply has been very small.

There have remained offers of hake originating from Uruguay, though the abundant fishery of the species will finish due to the fleet's switch to fishery of other species. In Moscow the supply of hake from various destinations has been fairly sufficient. From Canada and the USA traders have been offering mostly hake 300-500, 300-600 and 500+.

The lowest price of HGT hake 300-500 from the USA in Moscow has remained at RUB90.00 per kilo on the average.

The lowest price of Canadian HGT hake 300-500 IQF has fallen to RUB85.00 per kilo. The average price has settled at RUB88.00 per kilo.

The Russian hake made by ZAO Magellan (closed JSC) has appreciated to RUB88.00 per kilo ex-coldstore in Moscow.

Hake from Ecuador has been available in the capital from RUB72.00 per kilo of the size 80-100, from RUB80.00 per kilo of the size 100-200, from RUB81.00 per kilo of the size 200-400, from RUB86.00-89.00 per kilo of the size 400-600, at ca.RUB90.00 per kilo of the size 600-1000, and from RUB94.00 per kilo of the size 1000+.

Argentinean hake fillets skinned and interleaved have been marketed in Moscow from RUB118.00 per kilo of the size 100-200, while the size 200-400 has been sold at RUB125.00. However, the supply of the products has remained low.

Squid

According to the product suppliers from the Russian Far East, despite weak demand prices of the Russian squid have been growing. The suppliers are planning to capitalize on squid until the end of the year, and they refrain from leaving turn-of-the-year inventories in the coming year as the situation with the demand in the beginning of the new year is unpredictable.

As per the fourth week of October 2008, magister squid tubes from the new harvest have appreciated to RUB60.00 per kilo ex-coldstore in the Russian Far East. In Moscow squid tubes have appreciated to RUB65.00-68.00 per kilo ex-coldstore.

In Moscow there still remain offers of companies which have not raised their prices but they are only a handful. Product prices have been rising, only products from the harvest of May-June have been slightly cheaper.

As per the fourth week of November 2008, five large vessels keep operating on the squid grounds in the Russian Far East. Their daily harvest has been reported at ca.18 tonnes of squid, the volume evidently failing to satisfy the demand.

At the same time, prices for imported squid have remained stable so far.

Non-cleaned illex tubes originating from Argentina have been offered from RUB43.00 per kilo, while interleaved cleaned tubes of various sizes have been sold at RUB75.00 per kilo.

Cleaned squid tubes originating from China have been offered from RUB65.00 to RUB75.00 per kilo depending on the size. Squid fillets 100-200 have been offered at RUB75.00 per kilo.

Non-cleaned squid tubes 180 grams from Uruguay have been marketed at RUB60.00 per kilo.

New Zealand squid tubes 200-300 have been sold at RUB50.00-55.00 per kilo.

Peruvian giant squid fillets have been marketed from RUB37.00 per kilo.

Chilean giant squid fillets 2-4 have been offered from RUB40.00 per kilo.

Pangasius

In the third week of November 2008 prices of pangasius fillets have reached the bottom and by the fourth week of the month they have started to rise slightly.

According to some importers, prices for pink-coloured pangasius fillets have grown slightly. Pangasius fillets have gained popularity among the Russian consumers and they have fetched good demand therefore traders have been trying to sell off large volumes of imported products.

As per the fourth week of November 2008 the minimum price of pink-coloured pangasius fillets 200+ in Moscow has decreased to RUB49.00-50.00 per kilo, though most of the offers have displayed other prices. The average price in the fourth week of November 2008 for most of the importers amounts to RUB55.00 per kilo.

White-coloured fillets 200+ IQF have been on sale in Saint Petersburg from RUB75.00 per kilo.

Average prices in Moscow, dateline 24 November 2008

Seller prices in Moscow as per 24 November 2008, RUB per kilo