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The North American snow crab market remains sluggish, with some inventory being sold at a discount

 Last Update: 2022-12-29
 Source: Internet
 Author: User

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At the end of 2022, North American snow crab demand still did not see a significant rebound
.
According to the Urner Barry (UB) Price Index, the price of 5-8 ounces of frozen snow crab from Newfoundland and Labrador (NL) in Canada was $7.
90-$8.
15/lb on December 8, basically unchanged
from two months ago.

The UB report mentioned: "The Canadian snow crab market remains unchanged, demand is relatively neutral, and some manufacturers' quotations show signs of decline
.
" ”

A U.
S.
dealer told UCN: "Summer is usually the peak season for snow crab consumption, but sales have been very weak this year, especially in the southeastern
United States.
When you ask about the restaurant industry, almost everyone says their business has dropped by about 20%.

”

Sources reported that UB prices are conservative, with NL and some wholesale prices in the southern Gulf of St.
Lawrence now falling below $7/lb
.
"A lot of people don't want to place an order at this time because they don't want to stock it
.
Retailers are also no longer sourcing, and I've heard that some inventory is quietly emptied
at less than $7/lb.
”

"I sense that the market is weaker than I expected two weeks ago, and things may continue to decline, which I think may continue until mid-to-late January
.
" He said
.

Les Hodges, a veteran crab trader, said: "The market ahead is rugged, and as inflation continues to weigh on consumer sentiment, which is weighed down by rising interest rates, depreciating assets and weaker job market expectations, seafood such as king crab, snow crab, lobster, shrimp and scallops face continued weak demand and price pressure
.
" ”

The Fed has raised interest rates six times this year and is expected to continue at its December meeting
.
The Wall Street Journal, citing economists' forecasts, put the risk of a U.
S.
recession next year as high as 63 percent
.
"It would not be surprising
if the U.
S.
economy shrinks in 2023.
" Hodges said
.

According to the National Oceanic and Atmospheric Administration (NOAA), the United States imported only 1,842 tons of snow crabs in October, down 39% year-on-year, and imports were $35.
6 million, down 61%
year-on-year.
Of this, 1,568 tonnes were imported from Canada and valued at US$29.
5 million.

However, this is also the market result of
Russia's absence.
Because of the war in Ukraine, the United States imposed an import ban on Russian seafood, which came into effect
on June 23 this year.
Last October, Russia exported 2,061 tons of frozen snow crabs
to the United States.

In the first 10 months of this year, the United States imported a total of 42,127 tons of snow crabs, down 30% year-on-year, and imports were about $1 billion, down 40%
year-on-year.

In 2022, Canada's catch quota for snow crabs reached 82,989 tonnes, up 33% from last year, but exports appeared sluggish
.
Canadian media outlet Saltwire reported that Canada exported 19,500 tons of snow crabs in the first 10 months of this year, with an export value of 606 million Canadian dollars
.
For the whole of last year, Canada exported 21,000 tonnes of snow crabs, worth about $625 million
.

Mr.
George Paleologou, CEO of Premium Brands Holdings, a well-known Canadian seafood company, was even pressed by investors because Clearwater Seafoods, a subsidiary of Premium Brands, decided to stock up on a large number of goods and wait for the market to rebound
when the snow crab market was down.

On the other hand, many Canadian exporters are actively looking for other markets
.
For example, Vietnam's trade volume reached 1,900 tons in the first ten months, tripling compared to the same period last year; In the first ten months, China sold 3,300 tonnes with an import value of C$87.
2 million, compared to 2,600 tonnes of Canadian snow crabs valued at C$68.
3 million in the same period last year.

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