New Sugar Extraction Season Kicks Off with Drop in China's White Sugar Prices

The 2024 sugar extraction season has begun with some notable shifts in the market. As of the end of the week, China's white sugar price saw a decline. According to the commodity market analysis system of SunSirs, the price of first-grade white sugar in China dropped from RMB 6,442/ton (USD 0.89 per kg) at the start of the week to RMB 6,394/ton (USD 0.88 per kg), marking a decrease of 0.75%.

Rising Sugar Production in Yunnan and Growing Imports

Two sugar companies in Yunnan have already started their crushing season, which is expected to lead to a year-on-year increase of approximately 150,000 tons in sugar production for the province during the 2024/2025 crushing season. In terms of imports, China saw a significant rise in sugar imports during the 2023/2024 season, reaching 4.745 million tons—a jump of 860,500 tons or a growth rate of 22.15%. As a result, the import dependency of China's domestic sugar market rose to 33.65%, up by 6.49% compared to the previous year.

Global Sugar Market Trends: India and Brazil's Production and Exports

India's sugar production is expected to see a slight dip during its 2024/2025 crushing season, with estimates predicting a decrease to 33.3 million tons, compared to 34.06 million tons in the previous season. On the other hand, Brazil's sugar exports were robust in October, reaching 3.7294 million tons, with an average daily export of 168,700 tons—a 29.75% increase year-on-year. To support the market, Brazil has reduced production during this season. Meanwhile, other sugar-producing regions in the northern hemisphere are preparing for an increase in production, with weather patterns and shifts in domestic consumption being key factors to watch.

Outlook: Cautious Market and Price Fluctuations Expected

As domestic white sugar and new sugar begin to hit the market, there’s a sense of cautious optimism. However, traders and producers are adopting a wait-and-see approach for now. In the short term, white sugar prices are likely to experience fluctuations, as both domestic and global factors play their parts.

Conclusion: What Should You Do?

Given the current trends in sugar production, imports, and price fluctuations, it’s advisable to keep a close eye on both domestic and international markets. If you're looking to make a purchase or investment in sugar, it may be wise to wait until the market stabilizes after the new season starts. For those already holding sugar stocks, it could be a good time to assess your position, as prices might fluctuate further in the short term.





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