OSLO, Feb 10 (Reuters) - The average price of Norwegian farmed salmon is seen falling to a level around 62-63 crowns per kilo for deliveries in Oslo next week from 65 crowns in the current week, industry sources told Reuters on Friday.
In the current week prices have been somewhat higher than the initial expectations of 62-63 crowns per kilo. Final prices for the current week will be settled on Tuesday next week.
“Prices are slightly down to 63 crowns in Oslo compared to 65 crowns this week,” said a producer who declined to be named.
An exporter confirmed there was a small drop in prices.
“It’s around 62-63 crowns in Oslo, compared to 65 crowns this week,” the exporter said.
Both sources said the market was difficult because of the relatively high price level, which has been the case the recent weeks.
“The market is very quiet and hesitant, it seems demand is dropping,” the exporter said.
Since early January, prices have fallen from around 80 crowns per kilo.
Earnings margins remain high by historical standards, despite a sharp rise in production costs in Norway in recent years to around 30-31 crowns per kilo on average.
Several large producers are due to report fourth-quarter earnings in the coming week.
Norway is the world’s top salmon exporter, with leading producers including Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon.
Companies and analysts have predicted that salmon supply from Norway and globally will increase by around three percent in 2017 after a drop of 6-7 percent in 2016 due to declining production in Norway as well as in Chile, the world’s second largest producer. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)