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    Home > Food News > Food Articles > China refuses to accept Busan "re-export" pollock raw materials, the market is even more chaotic

    China refuses to accept Busan "re-export" pollock raw materials, the market is even more chaotic

    • Last Update: 2021-07-29
    • Source: Internet
    • Author: User
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    Since last week, China no longer receives from Busan, South Korea "health certificate" and "certificate of origin" of pollock containers, import and export chaos seems to trade further exacerbated; coupled with the rising cost of logistics, import business caution , The prices of H&G (head and dirty) raw materials and end products have changed again
    .
     
    Since the implementation of the “bulk-to-collection” policy in Dalian and Qingdao ports, Russian bulk carriers have not been able to call directly at ports in China.
    Large quantities of pollock raw materials were transferred to Busan, South Korea for container freezing, and then resold to Chinese processing plants
    .
    In fact, this batch of raw materials is not of Korean origin and has never entered a Korean factory.
    Strictly speaking, it has constituted "re-export trade
    .
    "
     
    A person in the pollock industry (Source A) told UCN: "The Chinese government needs a health certificate from South Korea.
    Unless the product is officially imported into South Korea, it will not be able to get a certificate from South Korea
    .
    To solve this problem, China, South Korea, and Russia The officials have started a dialogue
    .
    "
     
    A Russian supplier (Source B) said: “Chinese officials require suppliers to ensure that any seafood is not contaminated by the new crown virus.
    Generally, independent health certificates or other extended forms of certification are required, but we still don’t know the Russian authorities.
    The progress of coordination with China
    .
    My understanding is that Chinese officials hope to pass on this burdensome work to suppliers
    .
    "
     
      According to sources, a batch of South Korean containers have been rejected since last week.
    Currently, Busan Port has stockpiled 50,000-60,000 tons of raw materials
    .
    "This is an endless loop.
    I hope that the problem will be resolved as soon as possible, because we still have a lot of goods in Busan, and the demand (in China) is very strong right now
    .
    "
     
      "Russian Petropavlovsk-Kamchatskiy and Vladivostock ports can still deliver goods normally, but there are problems with the storage capacity and logistics of these two ports
    .
    Russian companies have learned the lesson and are trying to increase the production of fish fillets while reducing H&G production or shipping to Africa
    .
    ” Source B said, “However, the production of single frozen fish fillets in the Russian fleet is very limited.
    Fortunately, 7.
    The 400,000 tons of pollock in the West Bering Sea and East Kamchatka in August is expected to pass MSC certification
    .
    "
     
      Although the demand for pollock terminal products is strong, considering the dilemma of the supply chain and logistics system, H&G raw material prices are under constant pressure
    .
     
      "H&G prices may still change.
    I heard that the recent price fluctuates between $1,250/t-$1,400/t.
    The prices near the end buyers are higher.
    China has a great demand for raw materials, but the import process is very difficult
    .
    " Source A said, "The bulk price (CIF price) of block frozen products for secondary freezing exceeds $3,550/t
    .
    The price may be the second, and the real focus is to ensure the supply of raw materials
    .
    "
     
      Another source said that the spot price of frozen block is still rising, approaching the price of single frozen ($3,850/t)
    .
    The Alaska production season is coming soon, and the price of single freezers is expected to rise in the second half of the year
    .

     
      In addition, the rising cost of global shipping has put tremendous pressure on Chinese, Russian and European merchants
    .
     
      In China, processing companies need to bear additional costs of $400/t, including cleaning and disinfection costs of $200/t and logistics costs of $200/t
    .
    The cost of shipping containers from China to Europe has risen from $10,000 to $12,000 (in July).
    Even if the price of pollock rises, exporters may not make a profit
    .

     
      In Russia, freight costs for exporters have also risen by $200/t
    .
    In the past, it was transported to Dalian or Qingdao by bulk carriers, and Russian companies could still make a lot of money, and at present they can only achieve a balance of payments; the cost of containers shipped from Petropavlovsk and Vladivostok ports Much higher than bulk carriers
    .

     
      If you choose to ship in containers, the merchants must apply for certificates in batches
    .
    Previously, a bulk carrier only needed one certificate to transport 800-1,000 tons of cargo.
    Now each container requires an independent certificate, and the capacity is limited.
    One container can only carry 20 tons of quick-frozen fish fillets or 27 tons of frozen products
    .

     
      "Chinese processing companies are doing their best to import raw materials; at the same time, Russia is trying to sell fish to other markets as soon as possible
    .
    Let's see how many H&G raw materials can enter Chinese processing plants this fall
    .
    " Source A said
    .

    Import and export price
     
      Since the implementation of the “bulk-to-collection” policy in Dalian and Qingdao ports, Russian bulk carriers have not been able to call directly at ports in China.
    Large quantities of pollock raw materials were transferred to Busan, South Korea for container freezing, and then resold to Chinese processing plants
    .
    In fact, this batch of raw materials is not of Korean origin and has never entered a Korean factory.
    Strictly speaking, it has constituted "re-export trade
    .
    "
     
      A person in the pollock industry (Source A) told UCN: "The Chinese government needs a health certificate from South Korea.
    Unless the product is officially imported into South Korea, it will not be able to get a certificate from South Korea
    .
    To solve this problem, China, South Korea, and Russia The officials have started a dialogue
    .
    "
     
      A Russian supplier (Source B) said: “Chinese officials require suppliers to ensure that any seafood is not contaminated by the new crown virus.
    Generally, independent health certificates or other extended forms of certification are required, but we still don’t know the Russian authorities.
    The progress of coordination with China
    .
    My understanding is that Chinese officials hope to pass on this burdensome work to suppliers
    .
    "
     
      According to sources, a batch of South Korean containers have been rejected since last week.
    Currently, Busan Port has stockpiled 50,000-60,000 tons of raw materials
    .
    "This is an endless loop.
    I hope that the problem will be resolved as soon as possible, because we still have a lot of goods in Busan, and the demand (in China) is very strong right now
    .
    "
     
      "Russian Petropavlovsk-Kamchatskiy and Vladivostock ports can still deliver goods normally, but there are problems with the storage capacity and logistics of these two ports
    .
    Russian companies have learned the lesson and are trying to increase the production of fish fillets while reducing H&G production or shipping to Africa
    .
    ” Source B said, “However, the production of single frozen fish fillets in the Russian fleet is very limited.
    Fortunately, 7.
    The 400,000 tons of pollock in the West Bering Sea and East Kamchatka in August is expected to pass MSC certification
    .
    "
     
      Although the demand for pollock terminal products is strong, considering the dilemma of the supply chain and logistics system, H&G raw material prices are under constant pressure
    .
     
      "H&G prices may still change.
    I heard that the recent price fluctuates between $1,250/t-$1,400/t.
    The prices near the end buyers are higher.
    China has a great demand for raw materials, but the import process is very difficult
    .
    " Source A said, "The bulk price (CIF price) of block frozen products for secondary freezing exceeds $3,550/t
    .
    The price may be the second, and the real focus is to ensure the supply of raw materials
    .
    "
     
      Another source said that the spot price of frozen block is still rising, approaching the price of single frozen ($3,850/t)
    .
    The Alaska production season is coming soon, and the price of single freezers is expected to rise in the second half of the year
    .

     
      In addition, the rising cost of global shipping has put tremendous pressure on Chinese, Russian and European merchants
    .
     
      In China, processing companies need to bear additional costs of $400/t, including cleaning and disinfection costs of $200/t and logistics costs of $200/t
    .
    The cost of shipping containers from China to Europe has risen from $10,000 to $12,000 (in July).
    Even if the price of pollock rises, exporters may not make a profit
    .

     
      In Russia, freight costs for exporters have also risen by $200/t
    .
    In the past, it was transported to Dalian or Qingdao by bulk carriers, and Russian companies could still make a lot of money, and at present they can only achieve a balance of payments; the cost of containers shipped from Petropavlovsk and Vladivostok ports Much higher than bulk carriers
    .

     
      If you choose to ship in containers, the merchants must apply for certificates in batches
    .
    Previously, a bulk carrier only needed one certificate to transport 800-1,000 tons of cargo.
    Now each container requires an independent certificate, and the capacity is limited.
    One container can only carry 20 tons of quick-frozen fish fillets or 27 tons of frozen products
    .

     
      "Chinese processing companies are doing their best to import raw materials; at the same time, Russia is trying to sell fish to other markets as soon as possible
    .
    Let's see how many H&G raw materials can enter Chinese processing plants this fall
    .
    " Source A said
    .
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