SunSirs: China Sugar Prices Fall as Sales Slow

According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 5,905 RMB/ton at the beginning of last week, and 5,855 RMB/ton at the end of last week, with a price drop of 0.85%.

Domestically, as of the end of August from January to August, Guangxi has sold a total of 5.7563 million tons of sugar, with a production and sales rate of 89.04%, a year-on-year decrease of 96,900 tons, and industrial inventory of 708,700 tons, a year-on-year decrease of 16,100 tons; Yunnan has sold a total of 2.0823 million tons of sugar, with a sugar sales rate of 86.09%. In August, 130,900 tons of sugar were sold, a decrease of 10,100 tons compared to the same period last year. Industrial inventory was 336,400 tons, an increase of 70,700 tons compared to the same period last year. Market consumption still takes some time.

From a supply perspective, early October coincides with the National Day holiday, and many production companies have short-term holiday plans. However, traders still have ample inventory, and the market is mainly focused on digesting inventory. Sugar factories in Inner Mongolia and Xinjiang have started production one after another, and new sugar beets have been launched one after another, which has a certain impact on the northern market. There is still room for the price of white sugar to fall.

The speed of destocking in China is slow, and the market demand is insufficient. It is expected that the price of white sugar will mainly fluctuate and weaken in the short term.

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