According to the Commodity Market Analysis System of SunSirs, the average price of first grade white sugar at the beginning of this month was 7,126 RMB/ton, and at the end of the month, the average price of first grade white sugar was 7,170 RMB/ton, with a price increase of 0.62% and a price increase of 21.57% compared to the same period last year.
In June, the domestic sugarcane sugar production decreased and industrial inventory was low, resulting in a tight supply during this crushing season. The price of white sugar rose to around 7,000 RMB/ton, following the strong external market. At present, it is fluctuating in the high range of 6,800-7,200 RMB/ton. According to data released by the General Administration of Customs, China imported 40,000 tons of sugar in May 2023, a year-on-year decrease of 222,000 tons, a decrease of 84.73%. From January to May 2023, the cumulative import of sugar was 1.0611 million tons, a year-on-year decrease of 562,400 tons or 34.64%. As of May 2022/23, the cumulative import of sugar reached 2.8331 million tons, a year-on-year decrease of 620,100 tons or 17.96%.
Internationally, the weather in Brazil is dry, and the squeezing progress is catching up again. The monsoon rains in India have resumed, and the dry situation in Mapang has eased compared to the previous year. Against the backdrop of overall market weakness, there is a strong wait-and-see atmosphere in the market, with weakened downstream demand. The trading atmosphere for sugar companies is light, with weak price adjustments. The July contract is approaching delivery, but high prices are suppressing consumption. The downward force of spot goods is limited or there may be support.
In the short term, Brazil has entered the squeezing season, with a year-on-year increase in sugar production. This squeezing season is characterized by tight supply and demand both domestically and internationally; It is expected that the price of white sugar in the Spot market will mainly fluctuate at a high level in the short term.
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