SunSirs: Low Purchasing Sentiment, China Sugar Prices are Falling

According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 6,498 RMB/ton at the beginning of the week, and 6,448 RMB/ton at the end of the week, with a price drop of 0.77%.

Mid Autumn Festival stocking has basically ended, and spot prices continue to decline. The prices of processed sugar in some sales areas have been lower than those of sugar enterprises in Guangxi. Traders and terminal purchasing sentiment is sluggish, and overall transactions are weak. In July, China began to increase the amount of additional raw sugar arriving at the port, and the import volume increased significantly on a month on month basis. According to customs data, the import volume of white sugar in China in July 2024 was 421,800 tons, a month on month increase of 1,424.74% and a year-on-year increase of 280%.

In terms of the international market, Brazil announced two consecutive declines in the sugar production ratio in the central and southern regions in July. In addition, India has once again made it clear that it will not open up sugar exports, increasing market bullish factors. However, under the annual global oversupply pattern, market prices lack more bullish factors to support them.

The stocking of domestic white sugar market has ended, and it is expected that the price of white sugar will mainly fluctuate and weaken in the short term.

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