China restrictions add pressure to Ecuador shrimp market amid oversupply concerns

On July 9, Ecuador's National Chamber of Aquaculture (CNA) said it is continuing to monitor the restrictions imposed by China on Ecuadorian shrimp exporting companies and supported the creation of a technical working group between authorities from both countries to address the issue.

The suspensions announced by China currently affect a group of Ecuadorian processing plants and, although the official reason has not yet been disclosed by Chinese authorities, market sources said the measure may be linked to concerns over sodium metabisulfite levels in frozen shrimp shipments.

The market is concerned that volumes originally destined for China may need to be redirected to other destinations, increasing supply in a scenario already marked by high production, record exports and prices near historical lows.

According to the CNA, the measures do not represent a closure of the Chinese market to Ecuadorian shrimp and exports to China are ongoing. However, the association acknowledged that the restrictions are having operational and commercial impacts on the affected companies. Currently, 14 companies are at different stages of processes related to the restrictions, including cases initiated in October 2025 and January 2026.

The association said the observations made by China are related to sanitary control criteria and emphasized that Ecuador's shrimp sector operates in compliance with international standards of safety, quality and traceability. The CNA added it will continue working with affected companies and government authorities to preserve access to the Chinese market, one of the main destinations for Ecuador's shrimp exports.

Discussions related to China are taking place at a time of pressure on prices. Head-on Shell-on 30-40 count shrimp was assessed by Platts at $4,300/mt FCA Guayaquil July 8, down $100/mt from a week ago and $400/mt lower from June 3. Although there is still no clarity on the effective impact of the Chinese restrictions on trade flows, the market is closely monitoring the risk of increased availability if volumes destined for China need to be redirected to other markets.

While the CNA's position suggests expectations of a technical resolution of the cases and continued access to the Chinese market, supply fundamentals remain the main source of pressure in the short term, as uncertainty persists over the destination of volumes affected by the restrictions and the impact of weather conditions on production in the coming months.

Platts is part of S&P Global Energy.