SunSirs: China White Sugar Price Fluctuated and Fell Last Week (February 2-6)

According to the monitoring of the commodity market analysis system of SunSirs, the average price of first grade white sugar in China was 5,285 RMB/ton at the beginning of last week, and 5,281 RMB/ton over the weekend, with a price drop of 0.06%.

Domestically, sugar prices are generally weak, and the sugar production rate in production areas is relatively low compared to the same period last year. The market is currently in a seasonal accumulation stage, with high inventory levels. The demand for stocking before the Spring Festival is coming to an end, and the support for spot goods has significantly weakened. With the gradual realization of negative factors, sugar prices are already at a low level, with cost support below. The space for further decline may be limited, and the market is in a bottoming out stage.

Internationally, the expectation of oversupply has been fulfilled, and Brazil has entered the end of the crushing season. In the second half of December, the central and southern regions produced 56,000 tons of sugar, a year-on-year decrease of 14.93%, with a sugar production ratio of 21.24%. The cumulative sugar production was 40.222 million tons, an increase of 0.86% year-on-year; Another 26/27 harvest season is expected. The performance of Thailand's sugar extraction was slightly lower than expected, but the year-on-year decline gradually narrowed. As of January 17th, the daily sugar production was 2.8651 million tons, a decrease of 16.3%, and the decline narrowed compared to the previous month.

Domestic white sugar is in a stage of accumulation, with high inventory levels. In the short term, it is expected that white sugar will mainly fluctuate and weaken.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.