The final week of 2024, leading into the festive season, saw a rare period of stability in brown sugar prices across Eastern and Southern African markets. This steadiness was a marked departure from the fluctuating trends of previous weeks. Nairobi recorded the highest price for VHP sugar at USD 973 per metric ton, while Mogadishu offered the lowest price at USD 690, reflecting its strong supply dynamics.
Import Parity Overview
According to Kulea, slight depreciations were noted in import parities during the week:
- COMESA FTA: Fell by USD 1 to USD +25.
- COMESA Non-FTA: Dropped by USD 1 to USD +15.
- EAC Market: Decreased by USD 2 to USD -13, remaining in negative parity territory.
- World Market: Closed the year with a deeply unfavorable parity of USD -517, consistent with trends observed throughout the year.
Despite these minor declines, the overall market remained stable, with COMESA sources continuing to offer favorable import conditions compared to other sources.
Port Activity
No shipments were flagged for Kenyan destinations in the final week of the year. However, several vessels were active in the broader EAC region:
- Prince Khaled moored in Berbera, Somalia, with 7,800 MT of refined sugar.
- Ivone moored in Kismayu, Somalia, carrying 27,000 MT of VHP sugar.
- Suvari Kaptan moored in Bosaso, Somalia, with 9,500 MT of refined sugar.
- Aljabriya at anchor en route to Dar es Salaam, Tanzania, with 13,600 MT of VHP sugar.
The final week of 2024 underscored a stable sugar market across key African cities, providing a sense of balance after months of volatility. While import parities showed slight dips, this did not disrupt the market equilibrium. Mogadishu’s consistently low VHP sugar prices reflect a well-maintained supply chain, bolstered by steady high seas arrivals. This trend positions the region for a promising start to 2025, with potential for continued market stability.
Source: Kulea
Compiled by Victor Agut