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

In the third week of November 2008 the Moscow freshfrozen seafood market has been marked by a certain rise of activity in connection with the approaching end of the year, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

According to the market participants, the current crisis has hit large companies most severely as relying on large bank credits. Small companies managing with own money or small credits have not been pressed very much.

Besides, fish businesses have a possibility to use the crisis for their benefit. For instance, Nadezhda Kopytina (President of Ledovo Group) says that they will initiate legal proceedings against retail chains who will refuse to pay for the products under private labels or will demand longer terms of payment for these products. Moreover, Ledovo is going to tighten its conditions of trading with chains, in particular, raise their responsibility for their outstanding payments for the products. While earlier the chains have commanded the sales, now the producers can change the situation by refusing to sell on credit.

The market participants say that reduction of the railway tariffs for seafood transportation from the Russian Far East to the European Russia has not yet told on the activity of sales.

The financial situation with the bank transactions has been gradually recovering with many processors opening accounts in large banks such as VTB-24, Vozrozhdenie Bank, Sberbank, etc. Payments to accounts receivable have been resumed.

Slight weakening of pangasius and salmon roe prices has been one of noticeable events of the third week of November 2008, along with brisker demand for squid tubes.

Pink salmon

In the third week of November 2008 the situation on Moscow's pink salmon market has remained stable without any downward trends. The offer prices for head-on gutted pink salmon at ports of the Russian Far East have continued growing. More specifically, 1st graded head-on gutted pink salmon is offered at RUB55.00-57.00 per kilo.

In the Central part of Russia and, in particular in Moscow, prices remain stable with a slight rise. 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 continue offering American headed pink salmon 1+ in transit to coldstore from RUB95.00 tonnes in Saint Petersburg.

Chum salmon

According to the market participants, in the third 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 third week of November 2008 it has become clear that the current crisis has eventually affected trade in delicatessen products. Despite expectations of the market participants, prices for salmon roe have started to fall. While some time before there was a decrease of prices for salmon roe of low and medium quality, in the third week of November 2008 it is the salmon roe of higher quality that has been depreciating. Poor demand has pushed the prices down. In order to maintain generation of sales revenue the market participants have ceased trading in large lots, switching to small lots at higher prices. In general, the price decrease for all types of salmon roe has been reported at ca.RUB100.00 per kilo.

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

Canned salmon caviar has been offered by Moscow processors at RUB160.00-180.00 per 140-gram can. 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 third week of November 2008 prices for Atlantic salmon originating from Norway and Denmark have been gradually rising. The average increase through the week has been reported at RUB2.00-3.00 per kilo. There have also been products from Norway, Chile, Denmark, and the Faroe Islands.

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 2-3 premium has been marketed from RUB160.00 per kilo, while the sizes 3-4, 4-5, 5-6 and 6-7 have been traded from RUB200.00, RUB208.00, RUB210.00 and RUB212.00 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.

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

There have also been offers of chilled gutted salmon from 2 to 7 kilos made by ZAO Gigante-Pechenga (closed JSC) in Murmansk from RUB140.00 per kilo.

Trout

In the third week of November 2008 Moscow's market of frozen trout has been showing a continuing rise of prices for Chilean trout. The change of prices through the week has amounted to ca.RUB1.00-3.00 per kilo.

As per the third week of November, prices for Chilean trout 1.8-2.7 have rose to RUB178.00-182.00 per kilo, while the size 2.7-4.0 has appreciated only slightly from RUB185.00 to RUB188.00 per kilo.

Trout 1.8-2.7 Superior originating from Norway has fetched from RUB175.00 per kilo, the sizes 2.7-3.6 Superior and 3.6-4.5 have been available from RUB188.00 and RUB203.00 per kilo correspondingly.

Danish trout 2.7-4.0 has been sold from RUB185.00 per kilo.

In Moscow large wholesaler has been offering chilled trout farmed in Karelia 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 third week of November 2008 the market participants have been reporting saturation of the market with Norwegian herring and a slight decrease of prices.

Norwegian herring has been offered in Moscow from RUB30.50 per kilo of the size 300+, RUB33.50 per kilo of the size 350+, and from RUB50.00 to RUB55.00 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.

In the third 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.

Traders in the Russian Far East have been actively shipping Pacific herring to the regions up to the Urals, Siberia, and Barnaul. The prices have been steadily falling to RUB18.00 per kilo. There have been forecasts of further decrease of the wholesale price up to RUB16.00-17.00 as per the end of November 2008.

Mackerel

In the third week of November 2008 the mackerel market has been gradually getting saturated. The supply of mackerel of all the sizes has been growing, while the price has been stabilizing.

Traders have been offering mackerel originating from Norway, Scotland, Iceland, Japan and Russia both in transit to coldstore and ex-coldstore.

As per the first ten days of the month the Norwegian w/r mackerel has been offered by many market participants in Saint Petersburg at following prices: RUB65.00-68.00 per kilo of the size 300-50, RUB83.00-92.00 per kilo of the size 400-600, and from RUB120.00 per kilo of the size 600+.

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

The 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 RUB85.00-90.00 per kilo.

The 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.

The price of headed Russian mackerel 200-300 has amounted to RUB66.00 in Murmansk, RUB68.00-72.00 in St. Petersburg and RUB69.00 per kilo in Moscow. The supplies have been low, while the prices have been stable.

There have also appeared offers of imported w/r Pacific mackerel 500-600 in Saint Petersburg at up to RUB65.00 per kilo CAF. The demand for this mackerel harvested by the Japanese and Korean fishermen has always been limited, just like its consumption in Russia.

Baltic herring, Baltic sprat

The situation on the market of Baltic sprat and herring has displayed no changes as per the third week of November 2008.

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 RUB24.80-25.00 per kilo. The same product in transit to coldstore has been marketed at RUB23.00 in St. Petersburg.

Finnish herring has been marketed in Saint Petersburg from RUB19.50 per kilo of the size 11-15 and RUB23.00 for the size 15-17 subject to prepayment. 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 third week of November 2008 the situation on the capelin market has remained calm.

One large importer has been offering capelin 40-50 originating from Iceland and Norway ex-coldstore in Moscow at prices set at RUB32.00 per kilo. Canadian capelin 30-40 has appreciated from RUB42.00 per kilo.

Smaller suppliers have been offering this product from RUB48.00 per kilo.

Norwegian large capelin 25-35 has been offered ex-coldstore in Saint Petersburg from RUB45.00 per kilo.

The Russian capelin has been marketed ex-coldstore in Murmansk at RUB38.00-41.00 per kilo.

Blue whiting

On Wednesday, 12 of November 2008, coastal states at related to blue whiting of the Northeast Atlantic agreed to reduce the blue whiting TAC for the year 2009 by as much as 52.8%. In other words, the blue whiting TAC 2009 in the area has been set at 590,000 metric tons. The share of the EU amounts to a little more than 160,000 tonnes, thus displaying an equivalent reduction by 52.8% on the EU's share in 2008.

The above development implies a rise of blue whiting prices in the coming year 2009.

In the third week of November 2008 no considerable changes have been observed on the blue whiting market. In Murmansk traders have been offering blue whiting 20+ ex coldstore at RUB22.00 per kilo. In Saint Petersburg prices have been stable at RUB26.00 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.

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 RUB42.00 to RUB48.00 per kilo.

Traders have also launched sales of blue whiting fillet cubes originating from China at a price of RUB68.00 per kilo.

Russian pollock

In the third week of November 2008 Moscow traders have noted a continuing rise of prices of walleye pollock in the Russian Far East. In Moscow the product prices have been also rising.

Land-frozen late autumn pollock have started to arrive in small volumes at Moscow, which has not told on prices, neither has the reduction of railway tariffs. Traders think that the prices have remained steady due to stronger demand by the end of the year.

By the middle 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 10/1 ex-coldstore in Podolsk at RUB87.00 per kilo.

As for double frozen products originating from China, Moscow traders have a fairly large supply of fillets 6-8 and 8+ on offer. The average price of pollock fillets 6-8 amounts ca.RUB70.00-75.00 per kilo. Ex-coldstore prices of IQF fillets 8+ have been fluctuating also at RUB75.00 per kilo.

Hake

According to the statistics data, in September 2008 shipments of US hake to Russia amounted to 650 tonnes, 63% down on the corresponding result of last year. Through the first nine months of the year the American export of frozen hake to Russia decreased by the same percentage to less than 3450 tonnes.

The average export price for Russia in September 2008 amounted to 2.20 USD per kilo FAS or ex-transport vessel, more than 40% or 0.55 USD per kilo up on last year. The average price since the start of the year till the end of September 2008 reached 2.00 USD per kilo, 33% or 0.50 USD per kilo up on last year.

Under a decision of the US Marine Fishery Service factory trawlers and montherships have been handed over 20,000 tonnes of the quota initially issued for the land processors. The measure is supposed to let the fishery participants continue operations on the grounds through to the last ten days of November 2008 and provide good prospects of complete exhaustion of the seasonal quota for hake fishery in the Pacific coast of the USA.

As per the third week of November 2008 the situation on Moscow's hake market has displayed weakening of hake prices for products originating from Canada and the USA. Many traders offer Canadian, US, Russian and Ecuadorian HGT hake and Argentinean hake fillets.

The lowest price of HGT hake 300-500 from the USA in Moscow has dropped from RUB95.00 to 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 have been marketed in Saint Petersburg 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 been low because they are more expensive than the Chinese analogues approximately by RUB20.00 per kilo.

Squid

According to the provisional figures, the squid harvest in October 2008 in the Russian Far East amounted to only 7000 tonnes, 8100 tonnes down on October 2007. In January-October 2008 the harvest amounted to 50,400 tonnes, 1200 tonnes up on the same period of 2007.

Against the background of decreased catches in the course of October 2008 and declining coldstore inventories at ports, the prices have started rising. The forecasts of optimistic traders have come true.

As per the third week of October 2008, the minimum price of squid from the new harvest has been recorded at RUB57.00 per kilo ex-coldstore for lots from 20 tonnes. For lots from 5 tonnes and less the Russian squid has been enjoying actual bid prices of RUB58.00-60.00 per kilo.

More specifically, in the capital the minimum price for squid tubes harvested in 2008 and made by Vladivostok-based NBAMR have been reported at RUB58.00 per kilo. The maximum price has been recorded at ca.RUB60.00 per kilo. Several traders have set prices at RUB65.00 per kilo.

Squid tubes made by another Russian producer Akros have been available from RUB58.00 for lots larger than one metric ton.

In the Russian Far East squid tubes from the new harvest has been offered ex-coldstore from RUB50.00 per kilo.

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

According to the Ministry of Agriculture of Vietnam, five large producers of pangasius catfish, namely Navico, Agifish, Hung Vuong Corp, Vinh Hoan Corp and Avifish, have met to agree on mutual measures on increasing the export prices at 5% in order to pay higher prices for the raw fish. The price will be taken as the minimum price for the Vietnamese exporters of pangasius in order to prevent prices from falling.

However, according to one importer, the purchasing price in Vietnam has a small influence onto the final price on the Russian market. The market has been much more hit by the unreasoned activity of the Russian importers, who have brought down the market by large volumes of imported products.

According to the sources in Saint Petersburg, the prices for pangasius fillets for lots from 100 tonnes have been recorded at ca.RUB46.00 per kilo as per the third week of November 2008. All the traders have been waiting for a rise of the consumer demand which may result to a slight rise of prices. However, according to the pessimistic estimates, the current level of prices amounts to ca.RUB45.00 per kilo.

As per the first week of November 2008 pangasius fillets have kept depreciating in Moscow.

As per the third week of November the minimum price of pink-coloured pangasius fillets 200+ in Moscow has decreased to RUB48.00 per kilo.

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

Pangasius fillets 600+ have also been sold at about RUB75.00 per kilo.

Saury

The saury season in the Russian Far East has nearly come to an end. The quotas have not been covered completely. The fishermen have been shipping the remaining volumes of saury from the Kurile grounds to the ports. Prices at port have stayed at RUB16.00-17.00 per kilo ex-vessel. The market has not been oversaturated. The demand and the orders for saury from the canneries and processors have remained stable. Thanks to reduced railway tariffs and increased federal purchases the prices are expected to start rising from the end of November 2008.

Average prices in Moscow, dateline 17 November 2008

Seller prices in Moscow as per 17 November 2008, RUB per kilo