The East African sugar market experienced mixed trends last week after two weeks of steady price increases. In Kenya, Nairobi and Mombasa saw price corrections, with brown sugar prices dropping by USD 11 and USD 6 per metric ton, respectively, suggesting softening demand or market adjustments. Conversely, Dar es Salaam recorded a USD 24 increase, indicating possible supply constraints or heightened demand.
Import Parity Trends
After notable improvements in previous weeks, import parities for Very High Polarization (VHP) sugar declined across all sources:
- COMESA FTA: Fell by USD 17 to USD +18.
- COMESA Non-FTA: Dropped by USD 6 to USD +8.
- EAC Market: Decreased by USD 9 to USD -14.
While the decline reflects a cooling off in external market competitiveness, COMESA sources remained in positive territory.
Port Activity
Shipping activity for sugar continued in the EAC region but did not include Kenyan destinations:
- Prince Khaled moored in Berbera, Somalia, carrying 7,800 MT of refined sugar.
- Golden ID en route to Berbera, Somalia, with 27,400 MT of refined sugar.
- Ivone moored in Mogadishu, Somalia, transporting 27,000 MT of VHP sugar.
- Suvari Kaptan moored in Bosaso, Somalia, with 9,500 MT of refined sugar.
Conclusion
The week’s trends indicate market adjustments in Kenya, with declining local prices contrasting with rising costs in Tanzania. Import parities softened across the board, though COMESA sources remained favorable. No high seas activity was flagged for Kenyan ports during this period, highlighting a lull in direct sugar imports.
Source: Kulea
Compiled by Victor Agut of KSB