Vietnam: The world market is under strong downward pressure, has domestic sugar prices reached their peak?

Published Dec 18, 2023

Tridge summary

The recent increase in sugar prices has benefited Vietnamese sugar enterprises and motivated farmers to return to growing sugarcane, with domestic sugar prices averaging at 22,000 VND/kg in early December 2023. The upward momentum of sugar prices cooled as Vietnam entered the 2023/2024 sugarcane crop year, but it is difficult for world sugar prices to decrease deeply due to a forecasted increase in global sugar supply and a decrease in global sugar production output.

SSI Research estimates that sugar prices may be at the peak of the cycle, but the decrease in world sugar prices will not immediately impact domestic sugar prices due to close monitoring of imported sugar and compliance with anti-dumping and anti-subsidy policies in Vietnam. Despite increased domestic sugar production output meeting 1/3 of consumption demand, there will still be a large gap when entering the festival season in the second half of the year, supporting sugar prices in the short term.

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

Original content

Source: tapchicongthuong.vn The recent increase in sugar prices has helped many Vietnamese sugar enterprises significantly improve their business operations as well as motivated farmers to return to growing sugarcane. In early December 2023, domestic sugar prices maintained at an average of 22,000 VND/kg, moving sideways compared to November 2023 and increasing 24% over the same period in 2022. The upward momentum of sugar prices somewhat cooled down when Vietnam enters the 2023/2024 sugarcane crop year. In addition, the world sugar price in early December 2023 fell below the threshold of 22 US cents/pound, down 19% compared to November 2023 and up 13% over the same period in 2022. In November 2023, The World Sugar Organization (ISO) has adjusted the global sugar deficit in the 2023/2024 crop year from 2.1 million tons to 0.3 million tons, due to the forecast of a 3% increase in global sugar supply ( mainly from Brazil). In addition, in the context of crude oil prices having ...

Source: AgroInfo.vn