U.S. tilapia stocks are high, wholesale prices are continuously falling, and buyers are still hesitant to place orders.

Since July, the number of trade orders for tilapia between China and the U.S. has dropped sharply. Although U.S. buyers had stocked up in advance, starting from May 12, import tariffs reached as high as 55%, exceeding the total tariffs of all other imported seafood. After nearly two months of rising prices, the U.S. market is showing signs of fatigue, currently stuck in a deadlock of high inventory, high costs, and low circulation.

In the 33rd week, the overall performance of the U.S. market remained in surplus supply, with importers dealing with large amounts of inventory, and neither the retail nor the catering sectors showing any growth, leading buyers to be very cautious in placing orders.

Chinese exporters have offered "duty paid delivery" (DDP) terms to the U.S. market, along with other price reduction strategies, in an attempt to lower the risk for U.S. buyers. However, this has not resulted in more new orders.

The summer months are the peak harvest season for tilapia, and combined with the interruption in U.S. demand, raw material prices have fallen to their lowest levels in history. For example, raw materials weighing 500-800g are priced at CNY 7.3/kg in Guangdong and CNY 7.6/kg in Hainan.

On August 11, the temporary trade agreement between China and the U.S. was extended by 90 days, with tilapia tariffs remaining at 55%. This tariff rate did not significantly help restore market confidence, as the underlying issue lies in the demand side.

Due to inventory backlog and sluggish sales, buyers are reluctant to sign long-term contracts. Some buyers have already started to inquire about prices, and at least initial purchasing intentions exist, so any price rebound in the near term will be a gradual process.