Shrimp prices in Ecuador, Europe rise amid reduced supply

Lower supply coupled with firm demand have been boosting prices of shrimp in Ecuador and Europe in recent weeks, also affected by seasonal factors, market sources told S&P Global Commodity Insights.

Cash prices for shrimp have increased in both regions, with Platts -- part of Commodity Insights -- assessing the Ecuador shrimp marker at $5,400 per metric ton FCA Guayaquil on Sept. 16, compared with $4,800/t on Sept. 2. Meanwhile, the HOSO shrimp CIF EU was $5,450/t on Sept. 16, up from $5,100/t on Sept. 2.

Both assessments consider a standard shipment of head-on, shell-on (HOSO) Vannamei shrimp with 30-40 counts per kg, semi-individually quick frozen.

Despite the sharp rises, sources said there is room for further price increases.

Ecuadorian exporters have been seeing a combination of limited shrimp availability from various origins, and sustained demand, as several consuming regions are beginning to build inventories for year-end celebrations.

"We see steady demand but less supply, and this is the reason for price increases," a large shrimp supplier said.

Prices have been especially higher for large-sized shrimp, which are seeing increased demand. Shipments of 20-30 counts per kg HOSO have been traded at around $5.70/kg FCA Guayaquil recently, according to sources.

Market participants expect demand for shrimp in Europe to hold steady during the year, with southern Europe leading consumption.

Customs data shows that Asian suppliers have been losing share in European Union imports, while Ecuador and Venezuela have expanded shipments, as consumers have been seeking more competitive prices and consistent supply.

Shrimp prices are also under the effect of seasonal trend, with limited supply in India.

India is currently going through a low season for Vannamei shrimp. According to a source, this time of the year used to be more active, however, due to temperature issues at the start of the season affecting growth ratio and seed quality, the farmers have moved to black tiger shrimp.

There were also recent floods in India's shrimp-producing state of Andhra Pradesh, which impacted the supply of Vannamei shrimp from farms. However, panic selling from farmers prevented prices in India from rising.

Ecuador itself has been facing output issues, with colder-than-usual water temperatures affecting growth rates in the country. Some farmers have also seen increased mortality due to cases of white spot syndrome in ponds.

As a result, sources in the Ecuadorian shrimp industry believe output may remain stable in 2024, or even lower than 2023, after several consecutive years of increase.

Due to the low supply, ex-farm shrimp prices have also been on the rise, with HOSO shrimp with 30-40 counts per kg being purchased at around $3.90/kg in Guayaquil city, Ecuador. Prices were around $3.50/kg in early August.

Customs data from the Ecuadorian Central Bank compiled by Commodity Insights indicate stagnant export volumes this year, and a recovery in average prices.

From January to June, Ecuador exported 608,221 mt of frozen shrimps under the tariff code 030617, an increase of 1.7% from the corresponding period in 2023. The growth rate is the lowest in the last 10 years, when the average annual growth rate in export volumes was 24%.

Ecuador's average FOB export price was 5.99 per kg in June 2024, an increase from $5.14/kg in January 2024, the figures show.