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OSLO, Dec 2 (Reuters) - The average price of Norwegian farmed salmon is expected to rise by around 2 crowns per kilo to 67 crowns next week, industry sources told Reuters on Friday.
"Prices are up slightly, especially for the big fish. Available volumes are somewhat lower and we are also heading towards Christmas. On average we expect 67 crowns for deliveries in Oslo," said a salmon producer who declined to be named.
Similarly, an exporter also said he expected prices of 67 crowns per kilo next week compared to 64-65 crowns in the current week.
Prices had initially been expected to rise by two crowns to 65-66 crowns in the current week, but in the end the increase was somewhat smaller.
"Expectations ahead of the Christmas season are lifting prices but its very difficult to sell the fish at these levels. We fear this will lead to an abrupt decline in prices," the exporter said.
Prices have been volatile so far in 2016 and hit a record in July above 80 crowns per kilo as supply fell while demand rose. Prices then proceeded to fall to a level just above 50 crowns before rising again.
Starting in early December, prices normally show a seasonal upturn on strong demand ahead of the Christmas holiday season.
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 Royal Salmon.
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 largest producer. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)