Global Demand For Argentine Squid Has Led To An Increase in Its Price, With The Chinese Market Becoming The Main Driving Force

According to the latest Expana price assessment, frozen Argentinian squid tubes and rings have increased by approximately 30% free on board (FOB, China). This reflects a significant increase in global demand for Argentine squid (Illex argentinus) amid declining supplies of other squid species.

The main Argentine squid fishing season has ended in August 2024. According to data from Argentina's Ministry of Agriculture, Livestock and Fisheries, this year's fishing volume is concentrated in the first half of the year, with February being the peak fishing period, reaching 50,224.8 tons. The total squid catch in 2024 will be 153,785.8 tons, an increase of 0.33% compared to 2023.

At the same time, Argentine squid exports are also showing a growth trend. According to GTT data, exports from January to September 2024 reached 142,993 tons, an increase of 2.9% over the same period in 2023. China is the largest export market, accounting for 31% of total exports; followed by South Korea (17%) and Singapore (13%). The proportion of exports to the European market (including the EU and the UK) is 13%, of which Spain is the main destination, accounting for 51% of exports to the European market, equivalent to 6.8% of global exports. Italy ranks second, accounting for 31% of exports to the European market. Argentine squid exports to Europe in 2024 will increase by 88% compared to 2023.

Since August 2024, prices for processed Argentine squid products have increased significantly, especially frozen squid tubes and rings. Among them, the price of squid tubes with specifications below 10 pieces/kg increased by 38.96% year-on-year. The main reasons for the price increase include insufficient supply of other squid species: the fishing season of Patagonian squid (Loligo) ended early in August due to the protection of fishery resources in the Falkland Islands. Peruvian squid (Humboldt squid) During the transition from El Niño to weak La Niña due to the El Niño-Southern Oscillation (ENSO) phenomenon, poor environmental conditions have limited the catch.

These supply shortages have pushed up global prices for Argentine squid, especially in the Chinese market. In addition, the price of squid in the European market is also on the rise. Although transportation costs have declined (freight from China to Europe fell by 21.17% month-on-month and 44.06% quarter-on-quarter), prices of raw materials and processed products such as squid tubes and rings are still under upward pressure.

The market demand for Argentine squid is expected to continue to grow amid a global shortage of other squid species. Combined with rising price trends in the Chinese and European markets, Argentine squid exports are expected to continue to benefit from this market dynamic in the future.