Marine Harvest ASA (MHG), the world’s biggest salmon farmer, and other producers are surviving a slump in fish prices over the last two months as a supply overhang is seen coming to an end.
Spot prices for Atlantic salmon plunged 32 percent from a record in July as warmer sea temperatures hastened fish growth and boosted volumes, according to data from the Bergen, Norway-based Fish Pool ASA salmon exchange. The Oslo Stock Exchange’s 15-member Seafood Index has fallen 0.6 percent since mid-July, helped by an outlook for a “pretty tight” market next year, Swedbank AB (SWEDA) said.
“Despite the price decline, expectations for 2014 are almost unchanged,” Henning Steffenrud, chief analyst at Swedbank First Securities, said in a phone interview. “Combined with the fact that salmon stocks are looking attractive on earnings multiples, that’s holding share prices up.”
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