Current Market Trend
Giant squid raw material prices have been under pressure for several months, and the correction has continued into early 2026.
For Gigas FOB 500g+, prices moved from CNY 22.50/kg in Apr-25 down to CNY 13.50/kg in Apr-26, following a sharp decline in Q4 2025 and a softer start to the year.
What stands out is not just the lower price level, but how much of the previous rally has been unwound. After peaking at CNY 23.00/kg in Oct-24, the market has now corrected by more than 40%, confirming that the tight phase seen in 2024 is no longer in place.
This has created a very different environment for processors and buyers. Instead of chasing raw material higher, the market is now moving with far less urgency. Buyers are covering closer to need, and sellers have less room to push prices aggressively.
Source: Tracea Market Intelligence — Jumbo flying squid (Dosidicus gigas), Gigas FOB 500g+, raw material price series (CNY/kg)
Most common specification
Giant squid (Dosidicus gigas) Cleaned, Treated, Tubes, 2lb printed bag 80%nw $2.48 FOB
Cost Drivers
Supply
Peru has tightened management in 2026 with new rules for artisanal vessels and a quota for the smallest segment, and recent market reporting in China pointed first to tighter Latin American supply in March and then to signs that prices may be finding a floor in April.
Demand
Demand has not disappeared.
But it has clearly not been strong enough to defend 2024–25 price levels.
The curve suggests a more price-sensitive market, with buying happening on dips rather than aggressive forward coverage.
Market Sentiment
This does not look like passive restocking under pressure.
It looks more like a market that lost urgency.
The flat readings in Jan–Feb 26 at CNY 14.50/kg, followed by another slip into Mar–Apr 26, are usually what you see when buyers are comfortable waiting and sellers are still willing to move volume.
Freight and Logistics
Freight still matters, especially into Europe.
But it is not the lead driver of direction here.
Even if reefer and inland costs remain firmer than older baselines, they are not enough on their own to offset a raw material correction of this size.
East Asia to West Europe corridor rates per lane week 14.
FX
USD/CNY started the year close to 7.00 and is now trading closer to 6.82–6.90, meaning the yuan has strengthened by roughly 2–3% in 2026.
A stronger yuan means Chinese exporters are slightly less competitive in USD terms, which can add mild downward pressure on FOB pricing.
Packaging
Packaging is still a secondary issue compared with raw material, but it is not irrelevant. Limited availability of PE/PA bags in some processing hubs is slowing certain orders and putting extra pressure on lead times and packaging costs.
FX has remained relatively stable, with only modest yuan appreciation, meaning currency has had limited impact on the overall price correction.
Our view is that giant squid has moved out of the tight phase and into a normalization cycle.
The correction we have seen over the last twelve months is too large to dismiss as a simple seasonal adjustment. After peaking at CNY 23.00/kg in Oct-24, raw material has fallen back to CNY 13.50/kg in Apr-26, which tells us that the urgency that defined the market in 2024 is no longer there.
That does not mean the market is weak in absolute terms.
Unless there is a meaningful disruption in supply, it is difficult to argue for a strong rebound in the near term. The market looks more likely to stabilize and search for a floor than to begin a new rally immediately.
For buyers, that means there is less pressure to over-cover.
For sellers, it means the market now needs a new story before prices can move materially higher again.
Interesting Market Notes
1 | China absorbs 50–60% of Peruvian exports, meaning price direction is heavily influenced by inventory cycles and demand in Chinese processing hubs. |
2 | In 2026, authorities introduced more flexible fishing conditions, including removing per-trip catch limits for certain vessels to improve efficiency and quota utilization. |
We’ll keep tracking how this develops in the coming weeks, but for now the market remains tight and reactive.
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