An Argentine source told UCN: "Due to the short frozen shrimp season (the actual fishing period was significantly shortened due to strikes), inventory levels are very low across the board. Argentina does not have much stock left, all the frozen shrimp have been sold out, and everyone is waiting for the land-frozen season to fill the demand gap."
Additionally, during the offshore fishing season (frozen on ship), some red shrimp that were supposed to be frozen on ship (due to strikes) did not have time to undergo on-site freezing and were transported to land-freezing factories. This hybrid model results in a higher quality product compared to traditional land-frozen shrimp, with a CFR price of $7.80/kg.
In the recently concluded frozen on ship season, red shrimp prices reached a new high. A European trader stated that the average CFR (Europe) price reached $9/kg, and if buyers have a good relationship with suppliers, the transaction price can be as low as $8.75/kg, while other buyers have to pay $9.10/kg.
These prices correspond to L1 and L2 specifications of red shrimp. This year, there is very little L3 specification, with a higher proportion of L1 and L2. In previous years, L1 specification was higher than L2, but this year there was an inversion, and the final transaction price for L2 was actually higher. The Japanese market has a large demand for L2 specification, which further drives the price.