Norwegian cod demand increases, CFR price tops $6,000, Chinese processors prioritize U.S. orders! For more information on export to China, please call SINOLOBEN, service Email: email@example.com
The price difference between 1-2 kg Russian cod and Norwegian cod is in the range of $300-$500/t. The US has imposed import ban on Russian seafood and the UK will impose 35% import tariff on Russian cod (current import tariff for real cod and haddock is 6% and 7.5% respectively). If Russian raw materials are shipped to China for processing, made into value-added products and then exported to the European and American markets, they are not affected by the ban and tariffs.
According to source A, the price difference between Norwegian and Russian cod had widened to $1,000/t before the Russia-Ukraine conflict, and the price difference gradually narrowed after the serious inflation problem in Europe. The tariffs imposed by the UK will eventually be borne by consumers, and if that is the case, prices are likely to rise further.
Source B said that the price of Norwegian cod (1-2.5kg) rose from $5,300/t to $5,800/t and Russian (1-2kg) price rose from $5,000/t to $5,500/t in the past few weeks.
A Chinese processor head (source C) said, "CFR China prices are in the $5,800-6,000/t range and this price level is really a challenge, but some processors are still sourcing. Despite the higher cost, it will ultimately be borne by the customer and is less risky."
A European processor management source (source D) said, "The market for real cod is polarized, with more and more Chinese exports going to the US. Chinese processors prefer to source expensive Norwegian raw materials to meet US customer demand rather than Europe."
"If you compare it to other seafood products, the price of real cod is on the high side, and although all prices are rising, the increase in real cod seems disproportionate. The price out of Norway is as high as $5,500/t, with $100/t added to the FOB price and another $250-300/t added to the CFR China price," said source E.
Haddock prices are also on the rise. The source said that the small size of 500-600g haddock rose to $4,100-$4,200/t and the large size of 800g-1kg rose to $4,300-$4,500/t.
The annual catch limit (TAC) for hake is 415,842 tons and the production in the 19th week (May 9-15) was 244,680 tons compared to 250,576 tons in the same period last year; the production of haddock in the same period was 52,003 tons compared to 56,261 tons in the same period last year (source: Norwegian Seafood Authority).
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