Pacific Saury Market Update: High Costs & Tight Supply Drive Prices Up

Affected by El Niño, unfavorable ocean conditions in the North Pacific high seas have pushed saury yields to a historic low. China deployed 37 purse seine vessels this season, yet the average catch per vessel was only 200 tons—less than half of the international quota.

Compounding the production slump, operating costs have surged. Fuel prices in the North Pacific hit a rare $1,650/ton amidst a V-shaped rebound in global oil and squid prices. Tight fuel supplies and high costs have led to severe losses, forcing many vessels to return early and shift to the Southwest Atlantic for squid fishing.

Globally, poor catches in Japanese and Russian waters have further tightened supply. Over the past two months, domestic saury prices have rallied sharply. Wholesale prices for large (Size 1) saury hit 28,000 RMB/ton, though trading remains thin due to smaller 2024 catches and limited old stock. Medium-to-small sizes (Sizes 3-4) now exceed 20,000 RMB/ton. Strong bullish sentiment and poor fishing profits have led to hoarding by traders, keeping the market in short supply with prices firmly in an upward channel.

Industry experts note that with drastically reduced international quotas, volatile ocean conditions, and fluctuating oil prices, the high-cost purse seine operations are facing severe margin squeezes. The saury industry this year is characterized by "lower volume, higher prices, but poor profits." Rising prices fail to mask deepening losses, and the pressure to exit or switch fisheries is mounting, making it a particularly harsh season for the sector.