Peruvian And Argentinian Squid Prices Both Fell, Putting Pressure On The Chinese Market At The Start Of The Year.

The global squid market opened the first week of 2026 with a price drop. Prices for both Peruvian giant squid (Dosidicus gigas) and Argentine shortfin squid (Illex argentinus) weakened in the Chinese wholesale market, primarily due to the combined pressure of high Peruvian production and successful fishing by Chinese fleets in the Southwest Atlantic.

Peruvian Giant Squid: Price Decline Due to High Production

Data shows that the average price of 1-2 kg Peruvian giant squid fillets in the first week of 2026 fell compared to the last week of 2025, continuing the downward trend that persisted for the last two months of last year.

The core factor driving the price decline is the surge in production. Data from the Peruvian Ministry of Production (PRODUCE) shows that from January to September 2025, Peruvian giant squid arrivals reached a record high of 524,000 tons, a year-on-year increase of 189%. Exports also performed exceptionally well-frozen giant squid exports reached US$1.08 billion, more than tripling year-on-year.

Exports to the Chinese market increased almost sixfold, while exports to South Korea and Spain also achieved double-digit or even triple-digit growth. These three markets combined account for more than three-quarters of Peruvian squid exports, demonstrating continued demand for Peruvian squid in Asian and European markets.

However, market participants generally believe that there is limited room for price increases in the short term. If Peru maintains its catch quota of approximately 500,000 tons in 2026, the price of giant squid will likely remain low and volatile.

Argentine Shortfin Squid: High Yields from Chinese Fleet, Weakening Market

Similar to Peruvian squid, the Argentine shortfin squid market is also facing downward pressure. According to statistics from the Zhoushan International Agricultural Products Trade Center in Zhejiang, the Chinese ocean-going fleet is performing strongly in the Southwest Atlantic, with an average daily catch of 3-7 tons per vessel. As of December 30, the average cumulative catch per vessel reached 15-20 tons. The stable fishing pace, coupled with the release of domestic inventory, has significantly eased market supply.

Meanwhile, Argentina's 2026 squid fishing season officially began on January 2nd. Juan Redini, president of the Argentine Squid Fishing Boat Owners Association (CAPA), stated in a media interview that the industry is confident about this year's season. "Demand remains strong, and the relatively limited inventory in the Chinese market may support prices to some extent."

He pointed out that even with a good catch in Peru, China, as the world's largest squid processor and consumer, may still provide support for Argentine squid prices due to its low inventory levels. However, the final trend will depend on the yield and size performance at the beginning of the fishing season.

Market Outlook: Cautious Optimism Amidst Ample Supply

Overall, the global squid market is expected to start 2026 weakly under high supply pressure. Strong Peruvian production provides ample raw materials to the global market, while simultaneous harvests in China and Argentina exacerbate the short-term supply-demand imbalance. Despite declining prices, the market still retains some support – low Chinese inventory and rigid demand ahead of Asian festivals may provide a temporary floor in the coming weeks.

Industry insiders predict that if Peru's fishing pace slows down or Argentina's catch falls short of expectations, prices may see a brief rebound in the latter half of the first quarter. However, overall, "high production driving down prices and low inventory supporting prices" will remain the main theme of the global squid market in early 2026.