SunSirs: Sales Off-Season, China Sugar Prices Drop

According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 6,248 RMB/ton at the beginning of the week, and 6,228 RMB/ton at the end of the week, with a price drop of 0.32%.

Market analysis

Domestically, there has been less precipitation and obvious drought in Guangxi since December. The increase in production during the 2024/25 crushing season in Guangxi has fallen short of expectations. In terms of consumption, with the end of Spring Festival stocking, it has gradually entered the off-season. After the implementation of syrup and pre mixed powder policies in the domestic sugar market, it seems that the market has been fully digested and gradually returned to the fundamentals of the sugar market. Currently, it is in the peak season of production, and supply pressure is gradually increasing.

In the first half of December, the sugar production in central and southern Brazil was 348,000 tons, and Brazil's production is nearing its end. The new harvest season has good production prospects due to sufficient rainfall. India currently produces 9.54 million tons of sugar, a year-on-year decrease of 15.5%. Overall, the space above international sugar prices is limited.

Future forecast

Both international raw sugar and domestic Zhengzhou Sugar are in a period of increasing production, and it is expected that the price of white sugar will mainly fluctuate and weaken in the short term.

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