Recently, the price of illex squid raw materials has skyrocketed. In just ten days, the price per ton has risen by more than 800 USD and even more than 300 USD in just two days. Why does the price increase that high?
Illex Squid is a high-value product. As an exporter and supplier from China, Ocean Treasure can export to many countries. Illex squid catch located in the Argentina sea area. The season is different from Todarodes, which is Feb. to Apr. Specifications for squid products can be Dirty tubes, Clean tubes, rings, tubes & tentacles, wings, strips, sticks.
These days, the demand for squid products is enormous in the EU market. Ocean Treasure exports Todarodes, Illex, Gigas to UK, Germany, Italy, Netherlands, and other countries. According to the demand increase, the raw material price starts to increase. However, the illex situation has some negative influences on the illex importer.
Raw material from Argentina stopped shipping to China.
Chinese factories will import the raw material from Argentina and then process it into products like tubes and rings. However, the container of the raw material from Argentina was tested positive for covid-19 recently, which leads the Argentina exporters to worry that their containers might be positive. So some exporters stopped sending raw materials to China.
Taiwan catching vessels are banned from landing in Mainland ports.
Recently, all the Taiwan catching vessels are banned from directly landing in Mainland ports due to the lack of health certificates. These catching vessels mainly land the raw material for the products 200-300g. Since its banned, it will take us more time to get this raw material because these Taiwan vessels need to go back to Taiwan and send the raw material with containers.
The illex raw material stock from March and April will consume out soon.
The raw materials in the factory now are from the catching vessels coming back in March and April. This quantity of raw material may consume out till the end of August.
All these reasons made the illex squid raw material price increased that fast. Moreover, the increasing trend is continuing. Many factories stopped offering the price because they want to see what the actual raw material situation is, whether it is artificial speculation, and wait for the price of the raw material to stabilize before making the quotation.
The actual situation is that the raw material in China is in a small quantity, and the inquiries are increasing. According to the market trend, the illex price might have another increase due to the fact now.