During the week, the East African sugar market showcased varying trends, with stability in Kenyan prices contrasting with supply challenges in Rwanda. In Kenya, prices for brown sugar remained steady at USD 943/MT in Nairobi and USD 913/MT in Mombasa, mirroring broader price stability across the East African Community (EAC). However, Kigali faced heightened prices due to Uganda's ongoing export embargo, significantly impacting Rwanda’s sugar supply chain. Mogadishu continued to offer the region's most competitive VHP sugar price at USD 690/MT.
Import Parities
Trends in Import Parity Pricing:
- COMESA FTA (Mombasa): Achieved a positive import parity of USD +14, marking a notable recovery from a previous negative trend, indicating favorable conditions for regional imports.
- COMESA Non-FTA (Mombasa): Maintained a slightly negative parity at USD -7, reflecting a less competitive landed cost versus domestic prices.
- EAC Market (Nairobi): Continued to face the highest negative parity of USD -147, as the EAC sugar landed at USD 1,060/MT, making it significantly more expensive than local alternatives.
These trends highlight the competitiveness of the COMESA FTA sugar compared to the more costly EAC imports.
Port Line-Ups
The week saw several sugar shipments to the EAC region, primarily from India:
|
Vessel |
Status |
Loading Port |
Destination Port |
Quantity (MT) |
Sugar Type |
|
Prince Khaled |
Underway |
Kandla, India |
Berbera, Somalia |
7,000 |
Refined |
|
Golden ID |
Moored |
Kandla, India |
Berbera, Somalia |
27,400 |
Unknown |
|
Golden Shark |
Moored |
Kandla, India |
Muqdisho, Somalia |
4,000 |
Refined |
These shipments indicate robust import activity, supporting local and regional supply chains amid fluctuating market conditions.
The Kenyan sugar market remained stable this week, reflecting steady demand-supply dynamics, with Nairobi and Mombasa maintaining consistent prices. In contrast, Kigali’s sugar market faced significant strain due to Uganda's export restrictions, exacerbating supply challenges. On the brighter side, import parity for COMESA FTA brown sugar improved, indicating better regional trade conditions. However, high costs from the EAC region continue to weigh on local pricing dynamics, underscoring the complexity and volatility of the sugar market in East Africa.
Source: Kulea