Overview of seafood exports from Russia's Far East in March 2010
In March 2010 the market specialists were mainly focused on the situation with frozen pollock roe and the results of its seasonal shipments to the markets of Japan and South Korea (as well as for processing to China) were fairly satisfactory for the Russian producers, just like the results of shipments of cod, halibut, ocean perch and Atka mackerel. Thus, the market developments in March 2010 were fairly favourable for the Russian side and its foreign customers, though the situation with shipments of crabs still caused serious concerns, according to the overview prepared by analysts of www.megafishnet.com (www.fishnet.ru) based on Japanese and Russian sources.
Salmon
In March 2010 the Japanese import of frozen sockeye of the Russian origin was again limited to one container load of ca.20 metric tons, but last year it was also developing no more actively with the total volume cleared at customs amounting to less than 35 tonnes. On the other hand, while last year about 1300 tonnes of Russian products were imported in the first quarter of the year and the Japanese users had the opportunity to work with the raw material from the current shipments and not only from the turn-of-the-year inventories, in the current year 2010 they practically had no such opportunity as the import volume in the first quarter of the year failed to reach even 60 tonnes. Moreover, according to the market specialists, it was represented by such products which were actually contracted, but due to various reasons not duly cleared. Options for work with Alaskan raw material were much wider as only in March 2010 its import volume exceeded 400 tonnes, and in general through the first quarter of 2010 it reached the level of 1700 tonnes and had prospects of ending the first half of the year with the result of 2000 tonnes, a very good result for the low season.
At the same time there was a very big gap in prices of the Russian and US products. While the average import price (CIF) of the US products again appeared to be considerably below the level of 600 Yen per kilo, in March 2010 it descended to the level of 550 Yen per kilo (or ca.6.15 USD per kilo). The Russian products were cleared at customs at ca.900 Yen per kilo, and in March 2010 the average import price even amounted to ca.925 Yen per kilo (more than 10.25 USD per kilo).
Some market specialists think that such a high level of prices can be taken by the Russian producers of frozen sockeye harvested in the sea waters (the new fishery of which has already got started) as a basis for forming their positions at the coming talks with the Japanese side. These concerns are regarded fairly grounded as the Russian producers have reportedly hinted their Japanese partners about the need to command the prices of the products from the new season at the level of no lower than 900 Yen per kilo. Last year there were practically no shipments of frozen sockeye at all, and in the current year the fishery participants had to pay serious sums of money for capture quotas at auctions. However, at the present moment the market analysts very much doubt that the Japanese side will be ready to pay such high prices.
In March 2010 shipments of other Russian frozen salmon (coho, chum, pink and Chinook) to the Japanese market were not registered at all. In the meantime, volumes of the Chinese import in the first quarter of the year were limited to only 200 tonnes, but thanks to exclusively high activity of shipments in the second half of 2009 the total import volume of salmon products from the season of 2009 (which turned out to be very successful for the Russian producers all together harvesting ca.530,000 tonnes of salmon) was close to the level of 80,000 tonnes rising to 79,000 tonnes or nearly 3.5 times up on import of production from the season 2008.
Salmon roe
In March 2010 after a monthly break the Japanese customs resumed clearing shipments of Russian frozen products, however the import volume was limited to only ca.50 tonnes. The average import price again slightly exceeded 1000 Yen per kilo and amounted to ca.1080 Yen per kilo (ca.12.00 USD per kilo), while in March 2009 it was close to the level of 1700 Yen per kilo, ca.55-60% up on 2010 and the import volume was nearly seven times bigger. Through the first quarter of the year it was ca.600 Yen per kilo (or more than 35%) down on last year and the import volume was limited to 500 tonnes, more than 30% down on last year.
Import of salted sieved roe and other types of processed salmon roe of the Russian origin to Japan was not registered in March 2010, but through the first quarter 2010 the total import volume amounted to 6 tonnes of sieved roe, while in January-March 2009 even such volume of shipments was not registered at all. The average import price leveled at 2000 Yen per kilo.
Herring roe
The Japanese import of salted roe of the Russian herring in March 2010 and in the first quarter of 2010 was developing very slowly, but practically the same picture was also observed last year. In March 2010 import shipments totaled 5 tonnes and the result for the first three months of the year amounted to ca.10 tonnes. Last year import was limited to only 2 tonnes. At the same time, the average import price rose nearly by 25% on last year and returned to the level of 600 Yen per kilo. In March 2010 it appeared to be a little higher than 625 Yen per kilo (ca.7.00 USD per kilo). Import of frozen herring roe of the Russian origin to Japan was not registered again.
Pollock roe
Already in March 2010 import of frozen raw pollock roe of the Russian origin was developing much more actively than last year. It is explained by a very early start of seasonal sales of pollock roe products from Okhotsk operations thanks to early fishery start from the very first days of the year thanks to no delays with the fishery approvals and favourable fishery conditions as well.
The volume of the Japanese import in March 2010 jumped more than 2.5 times on February 2010 and appeared to be close to 1500 tonnes (namely amounting to ca.1420 tonnes), and the total volume of import to Japan, China and South Korea actually reached 2500 tonnes in March 2010, nearly five times up on the corresponding result in March 2009. In April 2010 the general activity of import was evidently higher as the customs cleared products purchased by the Japanese and South Korean companies both at March and April auctions during which, according to the Japanese estimates, they sold ca.18,000 tonnes of products (the total volume of seasonal sales was close to the level of 25,000 tonnes).
The volume of the Japanese import in March 2010, when shipments of products from the season of 2010 got started, jumped more than 40 times and the volume of the Chinese import grew more than 10 times to ca.640 tonnes. Growth of the South Korean import was much smaller, but its volume increased nearly by 8% to 430 tonnes on last year.
Presumably, the South Korean buyers will be much more active in the course of May sales which took off on the second week of the month, and in May and probably June they will be able to bring the volume of seasonal purchases to the level of 6000 tonnes (just like in the sales season of products 2009). The Chinese import actually has all the chances for a large rise from 3650 tonnes last year, as the Japanese users are evidently willing to recover the level of shipments of the Russian raw material for processing to China, as these shipments have got started very actively already from March 2010, while last year they started actually from June only.
Prices for shipments to China were higher than those to South Korea and Japan. The average import price to China (CIF) in March 2010 appeared to be at the level of 8.35 USD per kilo, while the average import price to South Korea was 2.10 USD per kilo down, and the average price of the Japanese import appeared to be below 700 Yen per kilo or less than 7.70 USD per kilo. Probably, April results could be better than those of March 2010 at least for shipments to Japan and China as in April 2010 the level of prices at Russian auctions in Busan increased considerably.
Pollock/cod
Japanese import of frozen Russian pollock in February 2010 and March 2010 developed very slowly, but in general through the quarter the import volume amounted to ca.200 tonnes, approximately on a par with last year. The average import price through the quarter was also very close to the last year result and amounted to ca.155 Yen per kilo, but in February and March 2010 prices were much higher than 220-230 Yen per kilo (ca.2.50 USD per kilo).
In the meantime, import of frozen Russian cod to Japan was developing much more actively than last year. In March 2010 only its volume increased by more than 30% to 130 tonnes, and in general through the first quarter of the year import rose practically 2.5 times to ca.770 tonnes (import of US products went down by ca.10% to less than 4830 tonnes, thus the Russian products began setting off a decline of Alaskan supply). The average import price in March 2010 appeared to be nearly 15% down on last year and amounted to ca. 220 Yen per kilo, but through the quarter it declined by only 5% to ca.245 Yen per kilo. Nevertheless, the Russian products fetched prices ca.20-25% below prices for the US products, the average indications of which rose by 10-15% on last year.
Official import of the Russian raw material to China in March 2010 more than halved as compared with February 2010 and was limited to less than 1700 tonnes. Through the first quarter of 2010 the customs cleared only ca.7000 tonnes, nearly 55% down on last year. The average import price in March 2010 declined by 15% on February 2010 to less than 2.10 USD per kilo, but it appeared to be slightly higher than last year and in general through the first it rose by 13% to 2.30 USD per kilo.
At the same time, Chinese export of crab sticks and other types of surimi-based products jumped by more than 60% (or more than 300 tonnes) to 800 tonnes of which more than 450 tonnes were shipped exactly in March 2010. The average export price FOB for the first three months of the year exceeded 4.75 USD per kilo, and in March 2010 it reached 5.60 USD per kilo, which was one of the highest results for all the main directions of the Chinese export.
Surimi
Japanese import of pollock surimi of the Russian origin got dramatically boosted in March 2010. Through the month under analysis customs cleared more than 210 tonnes of Russian products, nearly 12 times up on February 2010 and nearly 4.5 times up on March 2009. Evidently, the total import through the first quarter of the year reached 230 tonnes, more than 3 times up on last year. Obviously, a comparably low level of prices strongly encouraged a boost of sales volumes, because both in March 2010 and in the first quarter of 2010 the average import price was limited to only 220 Yen per kilo (ca.2.50 USD per kilo), 50-55% down on the first quarter of 2009.
Prices for shipments of the Russian raw material appeared to be much lower than those for shipments of Alaskan raw material (in March 2010 by 30% and in the first quarter by 17%), which also increased interest in the Russian raw material from some not very exacting users.
Bottomfish
The volume of the Japanese import of frozen Russian halibut in March 2010 declined more than two times on February 2010 and was limited to only 260 tonnes, however even such a big volume turned out to be higher than last year nearly by 68% and the total import volume through the first quarter of the year 2010 rose by more than 90% on last year and approximated the level of 1000 tonnes, which could be regarded a fairly high result for the first three months of the year. The average import price remained at 520 Yen per kilo (ca.5.80 USD per kilo), approximately 10% down on last year.
Import of frozen Russian flounder to Japan in the current year 2010 has been progressing even more weakly than last year. In March 2010 the import volume amounted to only 50 tonnes, 44% down on last year, and the import volume through the first quarter of the year declined by 75% and failed to reach even 100 tonnes. The average import price in March 2010 rose by more than 10% to 215 Yen per kilo (ca.2.40 USD per kilo), still being 30% down on last year. The average indications through the first three months of the year declined by more than 20% to 212 Yen per kilo.
The volume of the Japanese import of frozen ocean perch of the Russian origin in March 2010 slightly decreased as compared with February 2010 (by 14% namely), still exceeding 350 tonnes, nine times up on the respective result of last year. The result for the first quarter of the year jumped nearly by 90% to 1000 tonnes, though the product shipments from the new toothfish operations in the Northwest Atlantic were still far from beginning.
The average import price somewhat declined as compared with February 2010, but it still remained at 330 Yen per kilo (ca.3.65 USD per kilo), however it was 27% down on March 2009. Nevertheless, the average price for January-March 2010 declined by only 8% to ca.340 Yen per kilo, which together with currently strong exchange rate of Yen to USD could hardly speak about a noticeable decrease of actual sales prices.
Japanese import of frozen Atka mackerel in March 2010 descended nearly by 20% on February 2010 and was limited to less than 1600 tonnes, 18% up on March 2009, however in general through the quarter under analysis import of Russian products went down by 7% to 5500 tonnes (import of Alaskan products sank even more, namely by nearly 35%, to less than 6500 tonnes). The average import price slightly declined on February 2010, still being close to 230 Yen per kilo (ca.2.55 USD per kilo), a little up on the respective result of last year. The average price for the first quarter of the year rose nearly by 17% to 230 Yen per kilo, and the total import value rose by nearly 9% to ca.1.3 billion Yen despite a fairly strong reduction of shipments. Taking into account the current exchange rate of Yen to USD that could mean a rise of actual proceeds of the Russian producers.
Herring
In March 2010 Japanese import of frozen Russian herring went down more than three times as compared with February 2010 and was limited to only 700 tonnes, still nearly 200 tonnes or 40% up on March last year. The total result for the first quarter of the year rose by 16% to 3100 tonnes. The average import price for January-March 2010 turned out to be 7% below the last year result and amounted to ca.85 Yen per kilo. In March 2010 it also stayed at the above mentioned level of ca.0.97 USD per kilo.
In the meantime, Japanese import of frozen Russian herring fillets (according to some information, nearly all the volume was represented by Chinese shipments) in March 2010 was limited to only 150 tonnes, ca.60% down on February 2010 and 70% down on March 2009. The total import shipments through the first three months of 2010 declined by 43% and failed to reach even 1000 tonnes (namely amounting to ca.950 tonnes). The average import price through the quarter was 15% down on the same result of 2009 and amounted to ca.360 Yen per kilo. In March 2010 it approximately the same (namely leveling at 4.00 USD per kilo).
Crabs
Japanese import of live and fresh crab of the Russian origin started quickly recovering in March 2010 after very weak results of February 2010, however the volumes turned out to be much below the last year result. According to some estimates, that could be caused by processes connected with the development and signing of the official agreement on fighting the IUU fishing practices.
Import of live king crab in March 2010 jumped by 67% on February 2010, though it was still limited to only 35 tonnes, 83% down on March 2009. The total import through the first quarter of the year decreased by 77% and failed to reach even 300 tonnes. The average import price through the first quarter of the year amounted to ca.800 Yen per kilo, 22% up on last year, and in March 2010 it leveled at 1000 Yen per kilo, 235% up on March 2009.
Import of live snow crab in March 2010 rose nearly 8.5 times, but it was still limited to only 330 tonnes, 67% down on the last year volume. In the meantime, import shipments in January-March 2010 went down by 55% to 1000 tonnes. The average import price in the first quarter of the year appeared to be more than 30% higher than last year and amounted to ca.540 Yen per kilo, while in March 2010 it was close to 800 Yen per kilo, more than 90% up on last year.
Import of live hairy crab was still progressing much more actively than last year. In March 2010 import shipments exceeded 100 tonnes, 75% up on March 2009. The total result for the first quarter of the year rose nearly by 30% to ca.240 tonnes. The average import price in the first three months of the year exceeded the respective result of last year by 8% and amounted to a little more than 915 Yen per kilo, but in March 2010 it was limited to less than 855 Yen per kilo, still 57% up on last year.
Japanese import of Russian king crab in March 2010 was progressing more actively than last year, but the growth of volumes was limited to only 2% and the import volume amounted to only ca.430 tonnes. Due to the above facts the total shipments through the first quarter remained much below the last year level and amounted to only ca.1260 tonnes, 43% down on the respective result of last year. The average import price through the first three months of the year was limited to only 1400 Yen per kilo (just like last year), but in March 2010 it was already close to 1550 Yen per kilo (ca.17.20 USD per kilo), however it practically did not exceed the last year result once again.
Japanese import of frozen Russian snow crab was limited to less than 300 tonnes in March 2010 as well, but it was still at least 70% up on last year. In January-March 2010 it rose by 25% to 1000 tonnes. The average import price in March 2010 appeared to be nearly 20% down on last year and amounted to only ca.740 Yen per kilo (8.20 USD per kilo) and the average indications through the first quarter of the year decreased by practically 30% to below 670 Yen per kilo (as compared with last year).
Japanese import of frozen hairy crab and other crab species of the Russian origin was not registered just like import of canned crab and crab meat of the Russian origin. The import shipments of crab meat made by Chinese producers (greatly depending on shipments of the Russian raw material) went down by 25% through the first quarter and was limited to less than 1500 tonnes, while in March 2010 it turned out to be more than 60% down on last year and amounted to only 200 tonnes. The average import price through the first three months of the year declined by more than 11% and descended below 1600 Yen per kilo. In March 2010 it turned out to be even lower at ca.1525 Yen per kilo or ca.16.95 USD per kilo.
Chinese import of frozen Russian crab (regardless crab species) in March 2010 rose by more than 20% on February 2010, but it was limited to less than 320 tonnes, two thirds down on March 2009. Import of the Russian raw material through the first quarter of the year went down by 46% to 830 tonnes. The average import price for January-March 2010 was extremely low at only ca.2.35 USD per kilo versus more than 3.50 USD per kilo last year. In March 2010 it turned out to be more than 1.60 USD per kilo (ca.40%) up on March 2009 and amounted to only ca.2.50 USD per kilo.
Shrimp
Japanese import of frozen shrimp of the Russian origin got more active in March 2010, however its volumes were behind the last year indices again due to which the total import volume through the first quarter 2010 turned out to be much smaller than in the same period last year. Import in March 2010 grew by more than 37% on February 2010 and amounted to nearly 800 tonnes, still 28% down on March 2009. The total volume of shipments through the first three months of the year declined by 19% on last year to only ca.1830 tonnes. The average import price in March 2010 again descended below the level of 1000 Yen per kilo (approximately corresponding 11.00 USD per kilo), while in March 2009 it leveled at 1100 Yen per kilo. The average import price for the first quarter of the year amounted to only 965 Yen per kilo, nearly 17% down on the respective result of 2009.
Squid
Chinese import of Russian products in March 2010 resumed after at least two months break, but import shipments totaled only 2 tonnes or nearly 100 times down on March 2009. Taking into account that in the first quarter of 2009 import shipments totaled ca.730 tonnes of the Russian raw material, in the current year 2010 import of the Russian raw material to China could be described as practically suspended. The average import price amounted to 1.35 USD per kilo, two times up on last year, but with such a strong decline of import volumes that could be hardly regarded a big consolation.
Sea urchins
March import of live and fresh sea urchins went down by merely 2% on February 2010 and maintained at the level of 900 tonnes, 15% down on March 2009. The total result for the first quarter of the year the import volume even slightly increased, though by less than 1.5%. The average import price in March 2010 rose by 6% on February 2010 and returned to the level of 600 Yen per kilo. The average indications through the first three months of the year appeared to be higher than 625 Yen per kilo, 15% up on last year.