NEW YORK, July 26 (Reuters) – 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, according to shipping
data compiled by Reuters.
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.
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 is doing most
of the export deals, having nominated seven vessels to load
sugar at Brazilian ports, while Singapore-based trader Wilmar
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.
(Reporting by Marcelo Teixeira; editing by Miral Fahmy and
Aurora Ellis)
Read More: China loads 750,000 tons of sugar in Brazil, year’s largest import volume