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Natalia Freitas, reporting for Atuna.com
Tuna prices have continued to rise and reached a high level in South America, while in Asia prices are settling down at a more stable level. This is affecting and changing the flow of the world’s tuna raw material. Ecuador, for example, is now mostly being supplied by the carriers from the Western Pacific Ocean, instead of their own large purse seiner fleet in the Eastern Pacific.
While supply is short and prices are high, demand is coming to a slow down. The market is really quiet, buyers resistance to the current levels is high and resulting in “hand to mouth†buying for short term periods.
In Bangkok, skipjack 1.8kg continues to be traded just around and over USD 1700 per metric ton, with some deals done at USD 1750. Most packers in Bangkok are waiting the results of the Japanese local skipjack catching season. The lower quality share of skipjack caught, named ‘Kinkai’, is often exported to Thailand – because this fish it often too soft – too oily or too dark for the Japanese market.
Usually the ‘Kinkai’ period reaches its peak by end August. In the past, often a high ‘Kinkai’ supply led to a temporary drop in the Bangkok skipjack price. In a reaction to the slow demand and the inflated price levels – several packers in Bangkok have reduced their production capacity and lowered their inventory levels.
In the Philippines the picture is not much different with several canneries scaling down production and some even closing down shortly due to lack of supply.
One of the problems for Philippine canners is that a part of the fish landed in General Santos does not meet the anti –IUU criteria which are imposed by the EU. That way they have to find other destinations for this tuna.
The lack of supply has also has led to a lack of offers and trading activity, with no current price for tuna raw material available in General Santos- the Philippines. The last price reported was at USD 1650per ton.
Prices in Manta, Ecuador, have been steady since the past few weeks. Skipjack in Manta is now at USD 1850 for 1.8 kg up, and most traders believe it has actually reached the roof.
Skipjack prices in Spain are also at Euro 1400 per ton – or USD 1750 – coming mostly from the Atlantic Ocean. The reason for these relatively low prices are the small volumes being shipped there and it usually comes together with yellowfin transport.
Yellowfin prices in Vigo, Spain, are about the same as the past weeks, Euro 2050/2100 per ton, which means USD 2600.
The Indian ocean is now experiencing the monsoon season, a low season for tuna because of the heavy storms. On the other hand, with such bad weather piracy threat is low, with Somali pirates staying in port.
Prices are at levels of about USD 1700 landed Seychelles for skipjack with also strong demand from canneries in Mauritius and Madagascar. Yellowfin is traded at about USD 2350 CFR for 10 kg up.
Steel prices have been constantly increasing for the past six months, reaching its peak on April 2010. The average for that month was USD 576 per ton, and even though prices have returned to last year’s levels this month, USD 420 per ton, can makers have already announced increases in their prices for empty tuna cans.
Although no specific numbers have been released to describe the increase in empty can prices, tuna canneries are actually the ones taking the hit again. The empty can itself represents around 10% of the total cost of a full tuna can, and even with such a large increase the final price for consumers will not be affected significantly.
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