The Squid Market Is Sending Signals

   In terms of product structure, squid and tuna are the two core categories of China's distant-water fisheries, accounting for 40% of the total distant-water catch, and are also important sources for domestic consumption and export.

   Squid: In 2021, China's production reached 640,000 tons. Current domestic annual consumption is approximately 800,000-900,000 tons, accounting for about one-third of the global squid production, making it one of the world's most important squid consumption and processing markets.

   Accelerated fishing pace at the end of the year leads to an overall loose supply in the squid market.

   In November this year, the monthly price index of squid in major global fishing areas reflected this market trend. Of the four major fishing areas, prices fell in three, while one remained stable.

   High inventory, record-breaking catches, and stagnant downstream demand have all contributed to market pressure.

   Especially after entering December, the accelerated fishing pace combined with slow inventory depletion has led to an even looser overall market supply. Downstream processing companies have little willingness to replenish stocks, and the downward pressure on prices continues to be evident.

Southeast Pacific Ocean:

   The price decline was most significant. The squid price index in this region closed at 271.54 points, a decrease of 10.35% month-on-month.

   As of the end of November, the actual catch of Peruvian giant squid reached 620,000 tons, exceeding the annual allowable catch of 609,900 tons.

   Improved fishing efficiency has driven a continuous increase in supply, while processing companies have high inventories, and new purchases have slowed significantly. Traders have lowered prices to accelerate sales, further reinforcing market expectations of oversupply.

Southwest Atlantic Ocean:

   Quality issues and high inventory dragged down prices. The index in this region closed at 200.30 points, a decrease of 1.69% month-on-month.

   In November, squid production in Argentine waters was relatively abundant, but some catches from non-designated fishing areas had a high egg-bearing rate, resulting in overall lower quality.

Northwest Pacific Ocean:

   Relatively stable but still slightly declining, the price index decreased by 0.66% month-on-month, closing at 207.72 points. Although Japan suspended small squid fishing from November 1st to control supply, the previously approved additional quotas for coastal trawlers are still being implemented, meaning market supply has not tightened significantly.