Surplus in China, Importers Sell Sugar to International Market

By CnAgri2012-08-31 13:17:55 Print

Owing to forecast on better production and there has been slide of demand after procurement for the national reserve, importers turned to sell their cargo at the international market.

Kingsman predicted in this report that sugar production shall be 13.04 million tons in China in 2012/13, the demand shall rise by 1.5% to 15.48 million tons. China usually imports 2 million tons per year to meet the shortfall at the domestic market.

Chinese importers are trying to sell the Brazilian sugar, which arrived at Hong Kong, to a third party, but each of most of the ships is loaded with 5.5 tons and it is hard to find a replacing destination.

A survey indicates the projection on more production in China is part of the cause for global oversupply in 2012/13. The global surplus shall be 4.72 million tons in 2012/13, larger than the 3.2 million tons forecasted in January.

From "China Sugar Market Monthly Report"