OSLO Oct 7 The average price of Norwegian
farmed salmon is expected to rise for the third consecutive week
to above 60 crowns per kilo next week, industry sources told
Reuters on Friday.
Salmon prices rose more than expected in the current week,
and the recent rally has taken some market insiders by surprise.
"The price of mid-size fish of 3-6 kilo rises to 60-62
crowns per kilo for deliveries in Oslo next week. It seems some
exporters need fish. A shortage of big fish (above 6 kilo) is
also pushing prises for smaller fish upward," said a producer
who declined to be named.
For the current week, prices had initially been expected to
rise by two crowns to 56-57 crowns on average, but in the end
added another 1-2 crowns, the sources said.
Final prices for this week will be announced on Oct. 11 as
part of the Nasdaq Salmon Index.
An exporter confirmed prices were rising.
"Prices for 3-4 kilo salmon stand at 60-61 crowns, 4-5 kilos
at 62-63 crowns and for 5-6 kilos you could add another 3
crowns," the exporter said, predicting an average around 62
Both the producer and exporter were surprised by the strong
recovery in prices the recent weeks, as rising volumes had been
expected to keep prices lower.
Prices have been highly volatile so far in 2016 and hit a
record in July above 80 crowns per kilo as supply fell while
Production costs in Norway have risen sharply in recent
years to around 30-31 crowns per kilo on average.
Norway is the world's top salmon exporter, with leading
producers including Marine Harvest, Salmar,
Leroy Seafood, Grieg Seafood and Norway
Companies and analysts have predicted that the global supply
of salmon will fall by 6-7 percent in 2016 due to declining
production in Norway as well as in Chile, the world's second
(Reporting by Ole Petter Skonnord, editing by Terje Solsvik)