Chinese buyers are currently loading dozens of vessels with around 750,000 metric tons of sugar at Brazilian ports, the first large import movement from the Asian country in 2023.
China is traditionally the world’s largest sugar importer. Its movements in the market tend to influence benchmark prices for raw sugar in New York SBc1.
The country has been very quiet in the import market in 2023. Data provided by shipping agency Williams showed that China loaded only 170,000 tons of sugar in Brazil – the world’s largest exporter – in the first semester, compared to 1.35 million tons at the same period the previous year.
Commodities analysts Green Pool said in a report earlier this month that Chinese sugar stocks were running low after their long absence from the import market.
According to shipping data, state-controlled Chinese commodities trader COFCO International CNCOF.UL is doing most of the export deals, having nominated seven vessels to load sugar at Brazilian ports, while Singapore-based trader Wilmar WLIL.SI has nominated six ships.
Among other traders loading sugar for China in Brazil are Alvean, Sucden and Enerfo.
Independent sugar analyst Claudiu Covrig estimates that Chinese buyers closed an even larger volume of imports in total, mostly from Brazil as the country is usually the sole large exporter in the market in the second half.
He estimates total deals at 3 million tonnes, with loadings spread from now until December.
The Chinese buyers are said to have closed most of the deals when there was a downward correction in the market last month.
Sugar prices fell to a three month low late in June, after hitting an 11-year high late in April. Covrig said no more deals have been reported lately.
Brazil is expected to have a near record sugar season in 2023/24 as the weather has been positive.
Source: Hellenic Shipping News
