OSLO, Sept 22 (Reuters) - The price of Norwegian farmed salmon is expected to rise by 1-3 crowns next week from 20-month lows of around 50 crowns per kilo in the current week, industry sources told Reuters on Friday.
“Prices are rising a couple of crowns to 51-52 crowns per kilo in Oslo. It’s still high volumes but demand rose when prices fell,” one producer who declined be named told Reuters.
An exporter confirmed prices would rise.
“On average we expect prices to increase by 2-3 crowns for deliveries in Oslo from around 50 crowns this week,” he said.
“When prices fall to 50 crowns or below, customers begin to store fish in freezers to avoid the expected seasonal upswing in prices ahead of the Christmas holiday season. We’re also doing that,” the exporter said.
He added that he expected more volumes of fish to come on the market next week, which could again put pressure on prices.
Salmon peaked at around 80 crowns per kilo in early January and has since remained volatile. Norway is the world’s top exporter, and the share price of listed farming companies depends heavily on changes in the price of fish.
Supply constraints supported prices in the first half of 2017, ahead of an expected increase in volumes later in the year.
Average production costs for whole fish, including the cost of harvesting, rose by 13 percent to 34.29 crowns per kilo in 2016, according to data from the Norwegian Directorate of Fisheries.
Leading Norwegian producers include Marine Harvest, Salmar, Leroey Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)