W52 Shrimp Update: Vietnam Faces 8% YoY Decline in Shrimp Exports and India Hits Five-Year Low Prices

Vietnam Shrimp Exports Face Challenges in China and Hong Kong Markets Amidst Intense Competition

According to statistics released by the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam shrimp exports to China and Hong Kong experienced an 8% year-on-year (YoY) decline, reaching USD 569 million over an 11-month period of 2023. The downward trend persisted in Nov-23, with a substantial 24% month-on-month (MoM) decrease, amounting to USD 52 million.

This decline is attributed to the influence of economic growth, stock conditions in China and Hong Kong, and the intense competition from other shrimp-exporting nations, particularly Ecuador and India, which offer more competitively priced raw shrimp.

The current market dynamics, where China is a primary target for shrimp exporters due to its demand and cost advantages, have posed challenges for Vietnamese shrimp, forcing it to compete primarily on price. Despite these challenges, China remains a strategic market for Vietnamese shrimp, boasting higher consumption levels than both the United States (US) and Europe. Nevertheless, a YoY decline in Vietnamese shrimp exports to China is anticipated on Dec-23.

Indian Shrimp Prices Hit Five-Year Low, Reflecting Market Pressures and YoY Declines

The latest market data reveals a concerning outlook for the shrimp industry in Andhra Pradesh, India. The pricing dynamics, particularly for 30-piece white shrimps, reveal a notable YoY decline, with W51 prices at USD 0.18 per kilogram (kg) lower than the corresponding period last year. This downturn has brought the price to a five-year low, signaling challenges and market pressures. In the west coast state of Gujarat, the situation is even more pronounced, with prices across various specifications experiencing significant depression.

The 30-piece shrimp is priced at USD 4.56/kg, 40-piece at USD 4.20/kg, and 60-piece at USD 3.31/kg underlining the prevailing market challenges. Interestingly, the price of farmed vannamei shrimp in India stands as the lowest in Asia, with Ecuadorian shrimp registering a lower average price than its Asian counterparts. The average price of Ecuadorian shrimp of size 50/60 in the W51 was USD 2.5/kg, while the price of Indian shrimp of this size was USD 3.31/kg. Despite recent increases in prices in Thailand and Vietnam, the Indian shrimp market faces headwinds, as reflected in both YoY declines and reaching a five-year low. This scenario suggests a complex interplay of factors impacting the shrimp market in India, necessitating a nuanced analysis of economic indicators, global market trends, and regional dynamics.