In March, the price of pollock raw materials in Russia continued to decline, with the 25cm+ decontamination (H&G) price (CFR China) falling to $1,250/mt, down about 9% from the previous month.
At present, H&G prices have fallen to their lowest level since 2018, and behind the price decline is the rapid growth of production. According to official Russian data, as of February 27, H&G cumulative production was 172,518 tons, an increase of 21% year-on-year; surimi production was 11,428 tonnes, a significant increase of 389% year-on-year; fillet production was 34,052 tonnes, down 14% year-on-year; minced fish production was 5,979 tons, down 33% year-on-year; Whole fish (WR) production was 20,718 tonnes, down 13% year-on-year.
UCN sources believe that pollock raw material prices still have room for further decline, and the primary and secondary freezing markets have pulled back from 2022 highs.
Torunn Halhjem, sales director at U.S. distributor Polar Bear Enterprise, told UCN: "Compared to last year, Russian surimi production will increase significantly this year, with a slight increase in fillets and freeze, and H&G and WR remain stable." ”
Halhjem predicts that Russian surimi production will be about 60,000 tons in 2023, an increase of 85.5% year-on-year; fillet production will increase by 12% to 162,000 tonnes; H&G production is 580,000 tons. H&G, fillet and surimi prices fell from high levels and may rebound in the second half of the year.
