The price of shrimp imported into China increased due to the depreciation of the yuan

Published 2022년 10월 5일

Tridge summary

The article highlights the expected rise in shrimp prices in China's domestic market, attributed to a stronger dollar, COVID-19 restrictions, and an increase in holiday stockpiling. Despite the challenges posed by the pandemic to shrimp imports, particularly in the form of closures and financial pressures for exporters, the market share of raw shrimp imports is expected to grow long-term. The depreciation of the yuan against the USD, declining aquaculture stocks in South China, and rising shrimp demand have increased the advantage of imported peeled shrimp. In August, China imported 95,000 tons of frozen warm water shrimp, valued at $624 million, with imports from India notably increasing by 50% compared to July.

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Original content

A stronger dollar, coupled with an increase in holiday stockpiling in the fourth quarter, is expected to boost prices in China despite COVID-19 restrictions. According to Mr. Tian Lei, General Director of a shrimp processing company based in Zhanjiang, Guangdong, this year the Chinese market is still heavily affected by Covid-19. He expects the market share of raw shrimp imported into China will continue to increase in the long term. His company focuses on processing value-added products such as peeled shrimp, butterfly shrimp and shrimp balls, claiming to be one of the largest importers of headless raw shrimp in China. In the context that National Day, New Year and spring festivals are approaching, stockpiles in the fourth quarter will increase, shrimp prices in the domestic market will increase as the yuan continues to depreciate against the USD. Declining aquaculture stocks in South China and rising demand for shrimp have increased the advantage of imported peeled shrimp, ...

Source: Vinanet