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China's Offshore Squid Price Index (October 2024 Review)

CHINA
Friday, November 29, 2024, 19:00 (GMT + 9)

This report analyzes China's ocean-going squid price index for October 2024, as calculated by Zhejiang Zhoushan International Agricultural Products Trading Center Co., Ltd. and Shuliang Technology. Please note that the squid market is highly volatile, and this index reflects general trends.

Overall Index Performance

The China Ocean Squid Price Index climbed significantly in October 2024. The monthly index closed at 241.40 points, an 18.02% increase from the previous month. The weekly index also showed an upward trend, peaking at 237.92 points in the third week before a slight decline in the fourth week.

In this issue, the China Ocean Squid Price Index for October 2024 was calculated based on the price data of ocean squid in various sea areas provided by Zhejiang Zhoushan International Agricultural Products Trading Center Co., Ltd. and the Shuliang Technology Index Model, providing authoritative and scientific index operation analysis for manufacturers and consumers.

I. Overall performance of the index

According to data from Zhejiang Zhoushan International Agricultural Products Trading Center Co., Ltd., from the perspective of the monthly price index, the monthly price index of China's ocean squid climbed again in October 2024 , and the growth rate accelerated significantly . From the perspective of the weekly price index, the price index continued to rise in the first three weeks October , fell slightly in the fourth week, and closed at 235.10 points at the end of October, up 14.59% from the end of September.

2. Analysis of the monthly price index trend of squid

In October 2024, the squid market still showed a tight supply situation. China's offshore squid price index continued to rise at a high level, with the increase significantly widening. This month's index closed at 241.40 points, with a month-on-month increase of 18.02%, an increase of 11.02 percentage points from the previous period.

Figure 1 Trend of China's Ocean Squid Price Index (monthly)

The squid price index in the Southeast Pacific continued to rise, closing at 257.51 points, up 20.49% from the previous month. At present, the number of fishing vessels in the Southeast Pacific has increased, but the fishing efficiency remains at a low level. In terms of demand, considering the approaching peak consumption season at the end of the year and the unclear supply of subsequent goods, despite the continuous increase in squid prices, processing companies and distributors also choose to purchase at high prices. The unbalanced market structure of supply and demand has pushed up the squid prices in the Southeast Pacific.

Compared with other sea areas, the price of squid in the southwest Atlantic Ocean fluctuated less, and the index closed at 206.43 points, up 9.38% from the previous month. Currently, the production of squid in the southeast Pacific Ocean is poor, and the market demand for squid in the southwest Atlantic Ocean has increased. In addition, the seasonal reduction in squid catches in Atlantic coastal countries has led to the continuous consumption of existing stocks, and product prices have risen steadily.

Recently, squid production in the northwest Pacific has performed well, market demand has been strong, prices have risen significantly, and the index closed at 222.81 points, a month-on-month increase of 31.76%.

Influenced by the increase in squid prices in other waters, squid prices in the Indian Ocean also rose, with the index closing at 214.94 points, up 14.05% from the previous month. However, considering the low production and low transaction volume of squid in this area, the impact on the market is not significant.

Southeast Pacific + southwest atlantic + Pacific Northwest + Indian ocean. 

Figure 2 Monthly price index trend of pelagic squid in various sea areas

3. Analysis of weekly squid price index trend

Judging from the trend of the weekly price index: In October 2024, China's offshore squid price index first rose and then fell. At the end of October, the index closed at 235.10 points, up 14.59% from the end of September.

Specifically, in the first three weeks, the index continued to rise, but the month-on-month increase continued to narrow. In the third week, the index rose to an all-time high of 237.92 points, up 15.96% from the end of September; in the fourth week, the index adjusted downward for the first time since late July, closing at 235.10 points, a slight decrease of 1.19% month-on-month.

Figure 3 Trend of China’s Ocean-going Squid Price Index (weekly)

In terms of details, the squid price index in the Southeast Pacific and Northwest Pacific showed similar trends, rising continuously in the first three weeks and declining in the fourth week. At the end of October, the two indices closed at 258.16 points and 213.46 points, respectively, up 14.47% and 35.66% from the end of September.

The squid price index in the Indian Ocean region fluctuated upward with an alternating trend of rising and falling. At the end of October, the index closed at 256.01 points, up 23.70% from the end of September. Specifically, the index remained stable at 206.96 points and 232.35 points in the first and third weeks respectively; the index rose to varying degrees in the second and fourth weeks, with the second week seeing the largest increase of 12.27%.

The squid price index in the southwest Atlantic remained the most stable, with a moderate increase in the first three weeks and a slight decline in the fourth week. At the end of October, the index closed at 169.31 points, up 8.71% from the end of September.

                Southeast Pacific | Southwest atlantic | Pacific Northwest | Indian ocean

Figure 4 Weekly price index trend of deep-sea squid in various sea areas

4. Index trend forecast

Since the second half of this year, the global squid market has continued to face a tight supply situation, and resource shortages have brought tremendous pressure to the market. The domestic squid processing industry in Peru has almost stopped production; the second fishing season in the Falkland Islands has been cancelled, resulting in a significant increase in squid prices in the European market; and the import volume in the two major squid consumer markets of Japan and South Korea has also decreased significantly.

Recently, a small amount of fish caught in the southeastern Pacific has arrived at the port, easing the tight market supply situation, but the effect is relatively limited. Experts pointed out that the current replenishment of squid resources has shown signs of recovery, especially in the southeastern Pacific, and the squid production in this sea area is expected to gradually increase by the end of the year. However, it should be noted that the full recovery of squid resources will be a long process. It is currently entering the initial recovery stage and is expected to return to normal levels by the second half of 2025.

In the short term, market supply is still limited, and with holidays such as Christmas and New Year's Day approaching, market demand will increase, and the squid price index will most likely remain volatile at a high level.

Source: Shuliang Technology (translated from original in Chinese)

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