The week saw mixed trends in brown sugar prices across the East African Community (EAC). In Nairobi and Mombasa, prices increased by USD 14 and USD 8 per metric ton, respectively, following declines in the previous week. This upward movement may indicate tightening supply or rising demand in Kenya. Meanwhile, Kampala and Dar es Salaam maintained stable prices, reflecting balanced supply and demand dynamics in those markets.
Import Parity Trends
Import parities for Very High Polarization (VHP) sugar improved across most sources:
- COMESA FTA: Increased by USD 8, reaching a positive parity of USD +26.
- COMESA Non-FTA: Improved by USD 8, now at USD +16.
- EAC Market: Slight improvement of USD 4, though still negative at USD -10.
These trends highlight a favorable shift in external market dynamics, except for the world market, which remains uncompetitive.
Port Activity
Sugar shipments continued in the region but excluded Kenyan destinations this week:
- Prince Khaled moored in Berbera, Somalia, with 7,800 MT of refined sugar.
- Golden ID anchored in Port Sudan, Sudan, with 27,400 MT of refined sugar.
- Ivone moored in Mogadishu, Somalia, carrying 27,000 MT of VHP sugar.
- Suvari Kaptan anchored in Bosaso, Somalia, with 9,500 MT of refined sugar.
- Aljabriya underway to Dar es Salaam, Tanzania, with 13,600 MT of VHP sugar.
Conclusion
Kenya's sugar prices saw an upward trend during the week, contrasting with stable prices in other EAC markets. Import parities continued to improve, signaling potential opportunities for external sourcing, though Kenyan ports remained inactive. These dynamics reflect tightening regional supply and increasing volatility in the Kenyan market.
Source: Kulea
Compiled by Victor Agut of KSB