Frbiz Discusses China's Sugar Market

2010-11-01 18:20 1690

BEIJING, Nov. 1, 2010 /PRNewswire-Asia/ -- Frbiz reports that, affected by domestic and international futures prices rising, China's domestic sugar price has risen 0.9%. Inventory issues are expected to push China's sugar price slightly higher in the near future.

Sugar enterprises face shipment difficulties, and industrial chain processing enterprises are finding it difficult to get raw material supplies.

The high price for sugar production processing is the biggest influence on retail sugar prices. The hope is for the price to stabilize, creating a more profitable environment.

Due to severe weather and planting area reduction, the market widely expects that sugarcane production may further decrease in the near future. In addition, international prices have risen, and import costs are considerably higher than domestic product cost, which contributes to the rise in domestic sugar price.

Importing a large amount of raw sugar may work to ease the domestic market price pressures, but due to the processing cycle length -- generally at least one month to deal with 200,000 tons of raw sugar -- importing raw sugar can't immediately ease the sugar market's tight supply and demand situation.

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Keywords: Retail