LP Foods Updates: Shrimps Market Information

Vietnam

Vannamei shrimps season just started – market moving unpredictably.

Farming Situation:

Vietnam farmed quantity: same quantity of last year- about 500,000 Mts India: farmed quantity increases 20% compared with year 2020 (which was about 500,000 mts. Still lower than year 2019 of 800,000Mts)

Current price situation:

Size 13/15-26/30: stable due to high demand from USA Size 31/35-41/50: reduced as those are usually size requirements from EU markets Size 51/60-100/200: increasing under strong demand from EU and from Japan retailers as well as China market.

Price trend outlook for May:

Price won’t go much lower in the next 2 months even it is now peak season. If situation in India is controlled price is estimated to be stable; if India factories have to close, then price will be rocketing.

Reasons for our outlook:

– Many markets have recovered with the reopening of Food Services like as example USA, UK, China;

– USA overall inventory has lowered a lot while the new cargoes are on the sea and will arrive only from June/ Jul, therefore USA buyers are expected to keep buying big quantities and keep prices stable;

– The heavy Covid situation in India also made a big impact on the market outlook. If factories in India close down, USA buyers will have to rush to place orders in Vietnam to replace their inventories creating a huge price increase and disrupting the market;

– Current main size in India is HO 50pcs and raw material price is already 15-20% higher than Vietnam;

– Vietnam Packaging costs have increased 20-25%

– Ocean freight cost has increased at least double or triple depending on destination.

Top selling items:

USA market: + Cooked in Shell PTO + Raw PTO + EZ Peeled + Shrimps Ring Main sizes: 8/12-41/50

Japan market:

+ Breaded shrimp + Nobashi + Sushi Main sizes: 51/60-200/300

EU- UK market:

+ PD raw and cooked (including sushi) + Marinated shrimp + HOSO Shrimp Main sizes: 41/50-91/110