Peru's Squid Market: A Storm of Supply and Demand in 2025

Peru's Squid Market: Record Catch and Price Decline

The Peruvian squid fishing industry is currently at the center of a supply glut. Since late November 2025, when the Peruvian government announced a supplementary quota of 38,859 tons, the industry has been operating at an extraordinary pace. By mid-December, the total catch had already reached 30,543 tons, completing 78.6% of the allocated quota.

High Production, Low Prices

Despite the strong fishing performance, prices have not kept pace. The average price for squid in Peru's southern regions has dropped by 8.6% to 9.7% , currently trading between 2,800 to 3,200 Peruvian Soles per ton (approximately RMB 5,852 to 6,688 per ton). The northern regions, with higher operational costs, remain slightly more stable at around 3,500 Soles per ton.

Potential Early Closure

Industry insiders speculate that the fishing season may conclude early in the following week to prevent overfishing and allow the fishery to recover. This temporary measure could provide a brief price stabilization, but the long-term outlook remains uncertain due to the persistent oversupply.

China: The Driving Force Behind Peru's Export Surge

China's robust demand has been the primary catalyst for Peru's export boom. According to data from Peru's Ministry of Foreign Trade and Tourism (Mincetur), in the first ten months of 2025, Peru's squid exports to China saw a staggering 670% year-on-year increase , making China the largest buyer of Peruvian squid.

However, this strong export performance contrasts sharply with the domestic situation in China. The offshore squid market is currently under pressure from high inventory levels and weak local demand, leading to sluggish trading activity and prices that have hit annual lows. For example, at the Zhejiang National Offshore Fishery Base, the average settlement price for squid from the Southeast Pacific dropped to 13,908.87 RMB per ton, a record low for the year.

Broader Implications and Future Outlook

The current situation in Peru's squid market is a clear indicator of global supply-demand imbalances. The combination of record catches and weak domestic consumption is creating a surplus that is being exported to meet international demand, particularly from China.

• Short-Term Relief: If Peru implements an early fishing closure, it may offer temporary price relief by reducing supply. However, this is unlikely to resolve the underlying issue of oversupply in the global market.

• Long-Term Outlook: Analysts predict that the market will likely continue to experience low-level fluctuations in the first half of 2026, as the supply glut persists and demand struggles to catch up.