Kenya's brown sugar market continues its upward price trend this October. Prices in Nairobi and Mombasa have risen significantly, moving from USD 787 per ton and USD 764 per ton, respectively, at the start of the month, to USD 943 and USD 913 per ton as of Friday, October 25, 2024. In Kampala, brown sugar prices rose marginally by USD 4 per ton, while markets in Kigali and Dar es Salaam remained stable for the week.
Import Parities
Last week, import parities showed improvements across all regional sources:
- EAC Market: Improved to USD -41, a recovery from the previous USD -163.
- COMESA FTA: Improved by USD 44, reflecting a parity of USD -22.
- COMESA Non-FTA: Improved by USD 39, now at USD -33.
These shifts suggest a positive trend toward break-even points, with potential benefits for the Kenyan sugar market if the trend continues.
Port Line-Ups
The weekly port line-up for the EAC region includes the following vessels:
- Atlas: Moored at Yanbu al-Bahr, Saudi Arabia, bound for Dar es Salaam with 7,500 MT of refined sugar.
- Deniz ID: Underway, destination Berbera, Somalia, carrying 27,000 MT of unspecified sugar type.
- Eren Bulbul: En route from Santos, Brazil, heading to Moroni, Comoros, with 26,200 MT of LQW sugar.
- Prince Khaled: Moored at Kandla, India, destined for Berbera, Somalia, carrying 7,000 MT of refined sugar.
Kenya’s rising brown sugar prices contrast with the steadiness seen in other EAC markets like Kigali and Dar es Salaam. Improving import parities indicate the possibility of achieving break-even pricing with domestic markets, hinting at an adjustment in regional sugar market dynamics. However, with a projected increase in price volatility this quarter, stakeholders may face a more dynamic market compared to the previous period’s relative stability.
Source: Kulea
Compiled by Victor Agut from AFA - Sugar Directorate