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Norwegian salmon prices slump by 'at least' NOK 3

The general mood in the sector is not great either.

Norwegian farmed salmon prices have seen another drop this week with industry players telling IntraFish they are down by at least NOK 3 (€0.32/$0.38) per kilo on average into next week.

The general mood in the sector is not great either.

While the last report from Kontali Analysis, is suggesting a fall in prices in the second half of the year by around 20 percent, Karl Johan Molnes, an analyst at Norne Securities, is also recommending investors sell their salmon shares because the price will go down a lot.

This morning there was a big gap between prices and after 2.30 pm CET, the message from several sources is prices are down around NOK 3 (€0.32/$0.38) per kilo “at least."

“Yes, prices are heading downwards,” one exporter told IntraFish.

“There is not much trade and people are waiting. Producers are getting NOK 3 (€0.32/$0.38) less per kilo this week, compared with the previous one,” he said.

The exporter gave the following estimates:

  • Sizes 3-4 kilos: NOK 54 (€5.80/$6.80) per kilo
  • Sizes 4-5 kilos: NOK 55 (€5.90/$6.90) to NOK 56 (€6/$7.10) per kilo
  • Sizes 5-6 kilos: NOK 56 (€6/$7.10) to NOK 57 (€6.10/$7.20) per kilo

The exporter told IntraFish there are a lot of fish of sizes 3-4 kilograms available, but not much fish smaller than that.

“It is really surprising that the fall in prices has not happened before,” he said. “The level has been very high for a long time.”

The exporter said there is limited buying interest for the moment as it is August and much of Europe is on holiday. 

In addition, he said the rate of the krone is also playing a role. “It's a complex picture,” he said.

Another exporter confirmed prices will be at least NOK 3 (€0.32/$0.38) per kilo down. “But the situation is not particularly dramatic,” he said.

The second exporter reported the following prices to farmers in the south:

  • Sizes 2-3 kilos: around NOK 52 (€5.60/$6.60) per kilo
  • Sizes 3-4 kilos: NOK 56 (€6/$7.10) per kilo
  • Sizes 4-5 kilos: NOK 58 (€6.20/$7.30) per kilo
  • Sizes 5-6 kilos: NOK 59 (€6.30/$7.40) to NOK 60 (€6.40/$7.60) per kilo
  • Sizes 6 kg plus: NOK 63 (€6.80/$7.90) to NOK 65 (€7/$8.20) per kilo

Additionally, one Polish importer told IntraFish that prices are slightly down from last week but actually quite stable.

He is reporting NOK 60 (€6.40/$7.60) to NOK 61 (€6.60/$7.70) at Polish prices (DDP) for sizes 3-4 kilos. Prices for sizes 4-5 kilos are slightly higher.

“I have received more offers on fish at a relatively low price, but it is of problematic quality. Actually, prices shrink a part, maybe 20 euro cents, but it is quality-dependent,” he said.

The Fish Pool Index is calling the average price in July at around NOK 63.30 (€6.80/$8), and the average price in the first half at NOK 67.92 (€7.30/$8.60).

Average price so far this year, July included, is approximately NOK 67.25 (€7.20/$8.50).

Simen Thorbeck, a broker at Fish Pool, said future contracts for 2018 this week have been traded for NOK 62.50 (€6.70/$7.90) -- up NOK 0.50 (€0.05/$0.06) from last week.

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