SunSirs: Consumption Rebounded and White Sugar Prices Rose
March 06 2023 11:26:30 SunSirs (John)
Price trend
According to the monitoring of SunSirs, at the beginning of this week, the average price of primary white sugar was 5,912 RMB/ton, and at the end of the week, the average price of primary white sugar was 5,932 RMB/ton, up 0.34%, and up 3.24% from the same period last year.
Analysis review
The new sugar began to appear on the market, the spot price gradually rose, the consumption recovered, and the future demand rose. The smuggling of white sugar decreased, and the gap between domestic supply and demand was mainly made up by the import of regular channels. As of March 3, the import price of raw sugar after tax was higher than the domestic spot price, and the import price outside the quota was on the high side. The amount of domestic sugar accounts for nearly 65% of the supply in the new squeezing season. The decline in the sugar production rate of domestic sugar in this squeezing season had led to an increase in the cost.
Thailand's output recovered and exports increased. Brazil had good weather and increased production. India restricted the export of white sugar. The crude oil price fluctuated at a high level, and the proportion of sugar to ethanol increased, squeezing the sugar production capacity. The global epidemic at the consumer end eased and consumption warmed up. The supply and demand fundamentals will be slightly surplus in the next year, and it will maintain the tightened balance overall.
Market outlook
At present, the consumption of white sugar has warmed up, and the inventory has fallen slightly. It is expected that the sugar price will be mainly volatile and stronger in the short term.
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