Price trend

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 6,508 RMB/ton, and the average price of domestic first grade white sugar at the weekend was 6,604 RMB/ton, with a price increase of 1.48%, and a price increase of 12.27% compared to the same period last year.

Analysis review

Domestic Guangxi has fully harvested and reduced production, and sugar factories are currently reluctant to sell, which has supported prices. In 2021/2022, the national sugarcane sugar production was about 9.16 million tons, and the beet sugar production was about 1.07 million tons, totaling about 10.23 million tons. From the perspective of domestic supply and demand, the annual production of white sugar in China is about 10 million tons, and the consumption is about 15 million tons, with a gap of 4-6 million tons.

From a global perspective, there is not much difference in the supply and demand of sugar. The International Sugar Organization (ISO) increased the sugar production period for 2022/2023 in November 2022, bringing global sugar production to 182.1 million tons and lowering global sugar consumption to 176 million tons. It is expected that there will be a surplus supply of 6.185 million tons.

Market outlook

Domestic trade and terminal resistance to high prices, high sugar prices and weak demand are contradictory, downstream procurement is still on demand, and port shipments are slowing down. It is expected that in the short term, the spot market price of white sugar will mainly fluctuate in a narrow range.

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