South Korea: Will the price of refined sugar skyrocket due to the impact of the 'Super El Niño' phenomenon?

Published 2023년 6월 15일

Tridge summary

Concerns have been raised about a potential surge in sugar prices this summer due to the effects of 'Super El Niño', a phenomenon that could lead to a decrease in production in major raw sugar-producing countries like Brazil, India, and Thailand. Abnormal weather conditions such as heat waves and heavy rains are already causing disruptions in sugar production. As a result, sugar prices have reached their highest levels since 2011, with further increases of about 4.5% in early June. The reduction in the cultivation area in Thailand and the European Union due to abnormal climate and increased production costs is also contributing to the price hike. However, the Ministry of Agriculture, Food and Rural Affairs in Korea predicts that the impact on domestic sugar prices will not be significant, as tariffs for raw sugar have been reduced to 0% and the sugar industry is diversifying its imports from other regions, including Brazil.

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

Original content

Sugar on display at a large supermarket in downtown Seoul. 2023.5.7/News1 There are concerns that sugar, which has recorded the highest price since 2011, may soar this summer due to the effect of’Super El Niño’. Due to the 'Super El Niño', there is a possibility that the production of major raw sugar producing countries will decrease by next year, and prices have soared. Sugar prices increased by 33.8% and 20.8%, respectively, compared to $562 of sugar. Sugar prices started to rise in the second half of last year and reached the highest levels in April and May. It soared to 77.6% and 87.4% from the all-time highs of 2011 (708 dollars per ton of raw sugar and 799 dollars per ton of sugar). It was also analyzed that it had risen. Prices are on the rise due to abnormal weather such as heat waves and heavy rains. As 'Super El Niño' occurred this summer and disruptions in raw sugar production were expected, the price soared by about 4.5% in early June. El Niño It means a boy or baby ...

Source: Donga