Brown sugar prices in Kenya surged for the second week in a row, with Mombasa witnessing a sharp rise of 5.06% (USD 50), and Nairobi seeing a moderate increase of 1.86% (USD 19). This contrasts with the rest of the East African Community (EAC) region, where markets remained stable, and Southern markets experienced a calm trading week with minimal price volatility
Import Parity Trends
Import parities for brown sugar weakened across all sources:
- COMESA FTA: Declined by USD 5 to USD +57.
- COMESA Non-FTA: Dropped significantly by USD 42 to USD +47.
- EAC Market: Remained unfavorable with a negative parity of USD -24.
- World Market: Closed at USD -482, reflecting persistent challenges for speculative importers.
EAC-origin sugar continues to yield negative parity returns, underscoring the difficulty of leveraging imports under current market conditions.
Port Activity
Key vessel movements in the EAC region included:
- Prince Khaled: Moored in Berbera, Somalia, carrying 7,800 MT of refined sugar.
- Aljabriya: At anchor en route to Dar es Salaam, Tanzania, with 13,600 MT of VHP sugar.
- Lucky Trader: Underway to Mogadishu, Somalia, from Paranagua, Brazil, with 24,000 MT of VHP sugar.
- Sofia II: At anchor in Berbera, Somalia, carrying 7,900 MT (type unspecified).
- Ima Glory: Moored in Dar es Salaam, Tanzania, from Yanbu, Saudi Arabia, with 7,000 MT of refined sugar.
No arrivals were reported for Kenyan ports during the week, maintaining the trend of limited direct import activity.
Kenya’s sugar markets are increasingly diverging from the rest of the EAC region, marked by significant price hikes attributed to factors such as tightening local supply, inflationary pressures, or speculative trading. In contrast, other EAC markets displayed relative stability, reflecting balanced supply-demand dynamics. The depreciation in import parities across all sources highlights ongoing challenges for traders navigating volatile regional and global sugar markets.
Source: Kulea
Compiled by Victor Agut