According to the monitoring of the Commodity Market Analysis System of SunSirs, the average price of domestic first grade white sugar at the beginning of the week was 7,150 RMB/ton, while the average price of domestic first grade white sugar at the weekend was 7,142 RMB/ton, a decrease of 0.11% in price and a 22% increase in price compared to the same period last year.

The low inventory level of domestic sugar and the inverted import have led to a significant decrease in import volume in May, which has raised concerns in the market about filling the gap between production and demand. We are paying attention to changes in the internal and external price difference. The Spot market was mostly wait-and-see, and the exit of future sugar funds from the market dragged down sugar prices to seek support.

Due to long-term negative profits from imports outside the quota, the import of sugar has significantly decreased: in May, China imported 40,000 tons of sugar, a decrease of 53.14% month on month and a significant decrease of 86.59% year on year; The cumulative import volume from January to May was 1.06 million tons, a year-on-year decrease of 34.9%;

China domestic supply and demand continue to be tight, and the downstream market has moved back due to high sugar prices, increasing the market share of substitute sugar. It is expected that prices will continue to seek support in the short term, focusing on rainfall and sugarcane growth.

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