The Chinese shrimp market is experiencing a paradoxical situation as the average price of imported shrimp continues to decline, even amidst rising demand. Recent statistics from the General Administration of Customs of China reveal a notable decrease in shrimp prices, with February witnessing a 12% drop compared to the same period, settling at approximately 4.7 USD/kg.

Surge in Imports

Despite the price downturn, shrimp imports into China have surged significantly in the first two months of the year, primarily driven by heightened demand during the Lunar New Year festivities. The data illustrates a substantial increase in both volume and value of imports during this period.

Ecuador maintains its position as the leading shrimp supplier to China, accounting for a significant portion of total imports, approximately 73%. Import figures from Ecuador depict a notable rise compared to the previous year, with volumes increasing by 20%. However, despite the surge in volume, the corresponding turnover increased marginally, indicating a decline in average import prices.

Growth from Other Suppliers

In addition to Ecuador, other major shrimp suppliers such as India and Thailand have also witnessed substantial growth in their export volumes to China. Both countries recorded double-digit growth rates, with import volumes from India increasing by 25% and from Thailand by a remarkable 61%.

Despite the initial surge in demand during the Lunar New Year, concerns loom over the sustainability of the current market dynamics. Traditionally, the Chinese shrimp market experiences a lull post-New Year celebrations, raising apprehensions about the prolonged impact of declining prices.

Future Outlook

February saw a decline in shrimp imports compared to the preceding month and the same period last year. This downturn in both volume and turnover indicates potential challenges ahead, with a 15% decrease in import volume and a 25% decrease in turnover compared to February 2023.