An uplift in tuna prices is expected to ease Thai Union's path in 2019, according to analysts with Bualuang Securities.

Tuna is Thai Union's biggest product by value, earning the company THB 11.3 billion (€305.1 million/$350.3 million) in the fourth quarter of 2018, increasing just under 1 percent compared to the same period last year.

This contributed to a 1.7 percent increase in tuna revenues year on year and revealed an improvement in price, with sales volumes for the year down 1.6 percent at 283,105 metric tons.

This translates to a 3.3 percent increase in price year on year to THB 170,903 (€4,614/$5,298) per metric ton or THB 171.90 (€4.61/$5.30) per kilo.

The uplift is expected to ease Thai Union's path in the tuna supply chain according to Bualuang's Prasit Sujiravorakul.

"We believe that the raw tuna price within the $1,400-1,700 [€1,232-1,496] per ton range this year will make it easier for Thai Union to discuss or negotiate pricing with clients," Sujiravorakul told IntraFish.

The analyst therefore expects good margins for tuna sales to the United States and Europe in the coming year, with a mean tuna price of $1,600 (€1,408) per metric ton, "the healthy level for margin recovery," according to Sujiravorakul.

However, the analysts are also cautious about Thai Union's projection of a 15 percent gross margin this year, and conservatively assume a lower 14.1 percent to be more realistic.

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Raised tuna prices will give Thai Union negotiating power