Squid Market in Week 16: Peruvian Squid Rebounds Across the Board – Reversal or Phased Recovery?
- Ricardo
- 6 days ago
- 3 min read
In Week 16 of 2026, China’s ocean-going squid market saw a long-awaited rebound, with prices of squid from the Southeast Pacific (Peruvian squid) rising across the board and market sentiment warming up noticeably. However, based on supply and demand, inventory and production area data, this round of gains is more of a phased recovery rather than a trend reversal.
I. Market Overview: Peruvian Squid Leads Gains Across All Specifications
The price rebound was clear this week, with whole-round squid posting the strongest increases:
Extra-small whole-round: +800 CNY/tonne
Small whole-round: +750 CNY/tonne
Squid tubes: +525 CNY/tonne
Squid fins: +400 CNY/tonne
The three main products rose in tandem, showing a clear market rebound from the previous decline.
Data from the Zhejiang Agricultural Products Trading Center shows online trading volume of Southeast Pacific squid reached 2,442 tonnes, with notable improvement in buying support at low levels.
II. Key Drivers of the Rebound: Tighter Supply Schedule, Not a Demand Surge
This rally was not driven by a sudden pickup in demand, but a typical price correction after overselling:
Slower fishing activity: Operational adjustments at sea slowed short-term output releases, easing supply pressure from earlier concentrated arrivals.
Improved trading at low levels: After prices hit a periodic bottom, rigid restocking demand entered the market, leading to a significant increase in trading volume.
Divergence between domestic and origin markets: Fishing activity in Peru picked up and origin prices declined, while the domestic rally was purely driven by trading rhythm and arrival changes.
High-seas production remained weak at 3–5 tonnes per vessel per day, which does not support a strong upward trend.
III. Performance by Production Area: Clear Divergence, Mostly Stable with Mild Gains
1. Southeast Pacific (Peru)
Cumulative landings: 244,861.50 tonnes, fulfilling 80.17% of the January–June quota.
Recent fishing recovery and ample origin supply pushed origin prices lower, creating a divergence from the domestic rebound.
Conclusion: The domestic market is undergoing a phased recovery, with fundamentals not fully reversed.
2. Southwest Atlantic (Argentine / Outside Quota)
Quotations were generally stable, with only small sizes under 100g rising +250 CNY.
Online trading volume: 195 tonnes, trending steady with no major fluctuations.
Weak early-season performance and partial vessel withdrawals supported prices against declines for the time being.
3. Northwest Pacific + Indian Ocean
Quotations unchanged from the previous week, with thin trading (201 tonnes traded in the Northwest Pacific).
Trading remained sideways overall, acting as the market “stabilizer”.
IV. Key Risks: High Inventories Remain, Rally Lacks Solid Foundation
Port inventories remain at high levels with no meaningful relief in pressure.
Downstream activity continued to focus on rigid restocking, with little willingness to build inventories proactively.
Import arrivals at Zhoushan Port increased month-on-month, with sustained shipments and no obvious reluctance to sell.
Conclusion: Prices can rise easily but are hard to sustain, with durability dependent on destocking speed and end-user uptake.
V. Market Outlook and Operational Recommendations
Core Outlook
Main trend: Recovery in the Southeast Pacific, stability in the Southwest Pacific, sideways movement in other regions.
Nature: Phased recovery rally, not a trend reversal.
Key variables: inventory levels, arrival rhythm, downstream buying power.
Practical Recommendations
Avoid chasing gains blindly; focus on rigid restocking and quick turnover.
Strictly control inventory turnover and watch for slow sales of high-priced goods.
Closely monitor Peruvian arrival volumes and port destocking progress.
If inventories stay elevated, the rebound will likely stall and retreat.
Brief summary: Squid prices staged a decent rally in Week 16, but without a solid foundation. The high inventory + weak demand structure remains unchanged. This is still a corrective rebound and should not be treated as a trend reversal.
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