Week 33 Squid Market: Peru Weakens, Argentina Rises

In Week 33 of 2025 (August 8–14), the squid market at Zhejiang Zhoushan International Agricultural Products Trade Center remained generally stable, though significant divergences emerged between origins and product categories, forming a pattern of "weakness in the Southeast Pacific and strength in the Southwest Atlantic." This divergence stems from the combined influence of supply expectations, resource stocks, and consumer demand, among other factors.

I. Peruvian Squid (Southeast Pacific): Price Drops and Trading Volume Plummets – Pressured by Loose Supply and Weak Demand

• Price Trends: The average settlement price this week stood at approximately 18,286 yuan/ton, showing an overall decline.

  • Prices of large heads and necks fell sharply by 1,468 yuan/ton and 1,680 yuan/ton, respectively;

  • Key products such as small raw strips, large raw strips, and sliced squid dropped by 100–500 yuan/ton;

  • Tail fins bucked the trend with a 1,270 yuan/ton increase, while extra-small strips and ultra-small raw strips rose slightly.

• Trading Volume: A total of 2,722 tons were traded, a 51% week-on-week decrease. Ultra-small raw strips (726 tons) and small raw strips (926 tons) dominated transactions, accounting for 61% of total volume.

• Reasons for Fluctuations:

  1. Loose Supply Expectations: Peru’s Ministry of Production announced the resumption of jumbo squid fishing on August 25, with an initial quota of 50,000 tons (subject to adjustment based on surveys). This signal of increased future supply undermined market confidence, prompting traders and processors to reduce stockpiles and lower purchase prices, pressuring mainstream product prices.

  2. Weak Demand Support: Large heads and necks, primarily used for deep processing or bulk purchases, faced declining orders from downstream food processors, weakening raw material demand and exacerbating price drops. In contrast, tail fins— a niche category with stable demand and low inventory—saw a temporary price surge.

  3. Stable Fishing Operations: Chinese distant-water fishing vessels operating 30 nautical miles beyond the exclusive economic zone maintained a stable catch of around 1,200 tons per vessel. This steady immediate supply, combined with expectations of future quota releases, created a loose supply-demand balance.

II. Argentine Squid (Southwest Atlantic): Stable Prices with Gains, Small-Sized Products as Pillars – Boosted by Tight Resources and Peak Consumption

• Price Trends: The average settlement price was approximately 35,177 yuan/ton, remaining stable overall. Notably, 200–300g 规格 products rose by 500 yuan/ton, supported by growing demand for small-sized squid.

• Trading Volume: A total of 218 tons were traded.

• Reasons for Fluctuations:

  1. Tight Resource Expectations: Falkland Islands’ Loligo squid fishing has faced repeated temporary closures due to low biomass. If stocks fall below thresholds, this season’s fishing may end early. Fears of reduced Argentine squid supply spurred trader interest in high-quality stocks, particularly small-sized products—popular for household and food service use—due to rigid demand, driving their prices up first.

  2. Impact of Fishing Moratorium: China’s voluntary moratorium on fishing in the high seas of the Southwest Atlantic, effective July 1, reduced short-term supply. With relatively stable demand, tighter supply directly supported prices.

  3. Seasonal Consumption Surge: August marks peak catering season. Small-sized Argentine squid, prized for its tender texture and ease of preparation, became a sought-after ingredient in hotpot and barbecue restaurants, with rising demand pushing prices up slightly.

III. Other Origins and Customs Clearance: Stagnant Supply-Demand, Stable Prices

• Northwest Pacific Squid: No transactions; prices unchanged.

• Indian Ocean Squid: No transactions; prices stable.

• Customs Clearance: Volume of distant-water self-caught squid entering Zhoushan Port rose slightly week-on-week.

• Reasons for Stability: These origins cater to niche consumer groups and lack recent supply-demand drivers (e.g., fishing policy adjustments or seasonal demand shifts), resulting in low trading activity and stable prices.

Summary: This week’s market divergence reflects "supply expectations dictating Peru’s market and resources/demand shaping Argentina’s." Peruvian squid weakened due to loose supply and soft demand, while Argentine squid strengthened amid tight resources and peak consumption. Future trends will hinge on Peru’s quota adjustments, Argentina’s resource surveys, and shifts in end-consumer demand.