OSLO, Oct 7 (Reuters) - The average price of Norwegian farmed salmon is expected to rise for the third consecutive week to above 60 crowns per kilo next week, industry sources told Reuters on Friday.
Salmon prices rose more than expected in the current week, and the recent rally has taken some market insiders by surprise.
“The price of mid-size fish of 3-6 kilo rises to 60-62 crowns per kilo for deliveries in Oslo next week. It seems some exporters need fish. A shortage of big fish (above 6 kilo) is also pushing prises for smaller fish upward,” said a producer who declined to be named.
For the current week, prices had initially been expected to rise by two crowns to 56-57 crowns on average, but in the end added another 1-2 crowns, the sources said.
Final prices for this week will be announced on Oct. 11 as part of the Nasdaq Salmon Index.
An exporter confirmed prices were rising.
“Prices for 3-4 kilo salmon stand at 60-61 crowns, 4-5 kilos at 62-63 crowns and for 5-6 kilos you could add another 3 crowns,” the exporter said, predicting an average around 62 crowns.
Both the producer and exporter were surprised by the strong recovery in prices the recent weeks, as rising volumes had been expected to keep prices lower.
Prices have been highly volatile so far in 2016 and hit a record in July above 80 crowns per kilo as supply fell while demand rose.
Production costs in Norway have risen sharply in recent years to around 30-31 crowns per kilo on average.
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 the global supply of salmon will fall by 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)