The price of fish products fell by 0.5% in February from the previous month measured in foreign currency (SDR). However, product prices in foreign markets are still close to a historical high and have risen by 6.1% in the last 12 months. The price of most fish species is high. Our calculations are based on recent figures from Statistics Iceland on the average price of all types of seafood products and changes in the exchange rate of major currencies.
The position of the ISK improves the situation
External conditions for seafood companies are mixed at present. Seafood companies have suffered a cut in the cod quota in the current fishing year, which of course is not in their favour. In addition, the price of oil is still rising. High product prices in foreign currency and depreciation of the ISK recently can be said to be the reason why the performance of seafood companies is good at present.
Wild catch a luxury
The supply of wild fish has generally not increased worldwide recently, but demand is high. However, a substantial increase in aquaculture (including in Asia) means that the overall supply of marine products has increased significantly. It seems that wild catch is increasingly considered a luxury good. This should sustain the high product price in foreign markets which is a positive development for Icelandic seafood industry.
The ISK TW index 135 at year-end
Our exchange-rate forecast assumes a somewhat stronger ISK at the end of this year (ISK TW index 135). This exchange rate is acceptable for the fishing industry. (VH)
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Source: Glitnir Iceland
