Prices for Chinese fish meal have fallen 9% in the last month due to a decline in domestic demand as the summer season for aquaculture approaches an end. Demand for fish meal is the strongest at the start of the season, but fades gradually towards the end as buyers have already made their purchases. Buyers have also been holding off purchasing large volumes of imported fish meal, mainly from Peru, at Chinese ports, causing a build-up of stocks at port and weakening prices.
Peru is the world's largest fish meal producer and exporter. Production in Peru has risen due to an increase in fish stocks following the end of the El Nino in May this year. As a result, Peruvian fish meal production for 2016 is forecast up 7% y-o-y at 900,000 tonnes. The increase in supplies has added downward pressure to global prices. Furthermore, Peruvian fish meal exporters have also cut export prices in a bid to stimulate demand
