SunSirs: Weak Demand Leads to a Decline in China Sugar Prices
May 26 2025 10:57:18 SunSirs (Selena)
According to the monitoring of the commodity market analysis system of SunSirs, the average price of domestic first grade white sugar was 6,248 RMB/ton at the beginning of last week, and the average price of domestic first grade white sugar was 6,246 RMB/ton over the weekend, with a price drop of 0.03%.
Domestically, as of the end of April, the national industrial inventory was 3.86 million tons, a year-on-year decrease of 340,000 tons, supporting the bottom of sugar prices. In terms of imports, the cumulative import of sugar from January to April was 278,400 tons, a year-on-year decrease of 77.86%, indicating limited pressure on the supply of processed sugar. Summer stocking has not yet started, and spot transactions are mainly driven by essential needs, with high prices suppressing traders' willingness to hoard goods.
The new crushing season in central and southern Brazil has accelerated, resulting in a year-on-year increase in sugar production. In the first half of April of the 2025/26 crushing season, the sugarcane input in central and southern Brazil was 16.598 million tons, an increase of 2.99% year-on-year, which suppressed the rebound space of raw sugar. Thailand's 2024/25 crushing season production is expected to increase to 10.39 million tons, easing some of the supply gap.
There is a lack of favorable support for the weak downward trend of sugar prices domestically, and it is expected that sugar prices will mainly fluctuate and weaken in the short term.
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