Frbiz Reports: Sugar Industry Will Face Shuffle

2010-11-03 21:59 1735

BEIJING, Nov. 3, 2010 /PRNewswire-Asia/ -- Frbiz ( forecasts that next year, sugar prices may fall, but plunge probability is not large, and sugar price operation at high levels will become normal. According to statistics, from October 2008, China's sugar prices have risen from 2,800 RMB/ton to the current 7,000 RMB/ton, increased 150%.

These increased are affected by multiple factors, and Frbiz thinks that the Chinese market supply and demand gap is the prime reason causing this time. It is reported that in 2009-2010, China's sugar yield was only 10.7 million tons, but sugar demand was only 14 million tons. In addition, rural capital, manual work and other prices increased, and the international sugar prices rose sharply, causing an international capital influx.

Compared with international market, China's fruit sugar market share will improve. The data shows that the mature U.S. market fruit sugar demand is 120,000 tons, European is 47,000 tons, and Japan is 45,000 tons. Currently crystallized sugar accounts for 220,000 tons on the world market scale.

Sugar prices at high-level operations affect the common people's life but also promote health candy market development. Crystallized fructose is considered as the healthiest sugar, but subject to price and consumer concepts and other factors effect, fructose in this category on the Chinese market has little room for development. For consumers, as fructose's cost performance is further enhanced, this will be an excellent opportunity for enlarged market share.

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