How is COVID affecting sugar consumption in China

Published 2022년 12월 5일

Tridge summary

The Central Government's 20 measures to optimize COVID-19 control on November 11, 2022, aimed to reduce quarantine periods and increase mobility, leading to expectations of stimulated domestic consumption and economic growth. However, the impact has been below expectations due to additional restrictions or mass PCR testing, resulting in disruptions in logistics and crop damage. Despite these challenges, sugar production and supply are relatively normal, and there is no significant impact on sugar refineries' operation. However, raw sugar import margins have reached a record low due to the destruction of demand, and there are concerns about sugar import demand in 2023 unless consumption recovers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Central Government established 20 measures to optimize the control of COVID-19 on November 11, 2022 . The general idea was to reduce quarantine periods and increase people's mobility. With this, the market expected that domestic consumption would be stimulated, boosting economic growth. More than two weeks have passed and the actual effect is below expectation. Local governments continue to go overboard with the new measures, imposing additional restrictions or massive PCR testing. A recent survey showed that the queue of trucks stuck on a highway in Shanxi province was more than 3,000 meters because the exit was closed due to COVID restrictions. Farmers in Henan, Shandong, Anhui are destroying their crops because they cannot sell due to the disruption of logistics. January 22 is the Chinese Lunar New Year in 2023, which is usually the peak consumption in a year. Thirty percent of candy sales occur during this period, as people visit relatives and friends with gifts. This ...

Source: Canaonline