SunSirs: Consumption Accelerates, China Sugar Prices Rise

According to the monitoring of the Commodity Market Analysis System of SunSirs, the average price of first grade white sugar in China was 7,128 RMB/ton at the beginning of last week. The average price of first grade white sugar in China was 7,148 RMB/ton at the end of last week, a decrease of 0.28% in price and a 22.02% increase in price compared to the same period last year.

The sugar production in 2022/2023 has all ended, and the situation of production reduction has been settled. As of the end of June, industrial inventory reached 2.09 million tons, a year-on-year decrease of 1.46 million tons. This year, the cost of import outside the quota is high, and the import volume remains low. The problem of tight supply and demand is also difficult to alleviate through imports. Faced with the traditional peak sales season, domestic sugar supply is tightening in the later stage, and there is still uncertainty in the gap between production and demand.

Brazil's lower than expected production helped support the market, with sugar production in the central and southern regions of Brazil increasing by 7.6% year-on-year in the second half of June to 2.7 million tons, compared to the market's originally expected production of 2.88 million tons.

During the peak domestic consumption season, it is expected that white sugar will experience a strong trend of volatility in the short term, with a focus on rainfall and sugarcane growth.

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