Pangasius prices expected to rise again in EU markets
Prices of pangasius exported to the EU market continued to ease until the final week of June, but the prices is expected to rise through to year end.
After pangasius’s prices hit the record level of $2.50 per kilo for EU-treated, 100% net weight, FOB from Ho Chi Minh City in March 2017, prices have been easing. Vietnamese exporters confirmed prices at the end of June were $2.25-$2.30/kg.
Around May, prices began easing as supply caught up to demand, and have continued this downward trend since. However, this may not go on much longer, many exporters suggested. “Pangasius supply is normally more available in the summer time, May to July, so the raw material price was easing in June,” Vĩnh Hoàn Corporation general director Nguyễn Ngô Vi Tâm said. “However unlike other years, we are already seeing prices strengthening a little bit this week and expect a little bit more in July,” she added. Futhermore, the uptick in pricing is still down to the comparatively low pangasius levels available in Vietnam this year. Fish farming volume in general this year is quite less, due to unfavorable weather conditions.
According to Vĩnh Hoàn, most farmers and processors get profits in the first half of 2017 thanks to increasing raw material prices, in which farmers gained VNĐ 4,000-6,000 ($0.17-$0.26)/kg. However, it is estimated that in August, September, and the Q4 of this year, the processing plants will face a material shortage due to a consequence of declining farming area in Q1/2017.
Demand from fast-growing markets such as China and Hong Kong is surging, hence the supply-demand gap is expected to widen. Speaking on June 28, a salesperson with exporter Mekong Seafood Connection confirmed the company had seen prices dip throughout June, but take an upturn of VND 500 — around $0.02 — per kilogram most recently. She expected this to be the beginning of prices rising again throughout July. The EU importer also expects to see prices rise, she said.