The first week of 2025 extended the stability in brown sugar prices seen since mid-December 2024 across Eastern and Southern African markets. This calm start to the business year suggests a steady market trend, providing a solid foundation for the weeks ahead.
Import Parity Trends
Import parities for VHP sugar remained largely unchanged from the previous week. COMESA FTA saw a minor reduction of USD 1, while the World Market parity declined by USD 8, standing at a disadvantageous USD -525. EAC sugar sources continued to exhibit unfavorable landing costs, remaining higher than domestic sugar prices, making them less appealing for traders. The global market remains challenging for speculative sugar trading, showing little improvement.
Port Line-Ups
The week’s port activity highlights continued sugar shipments across the region:
- Prince Khaled: Moored at Kandla, India, destined for Berbera, Somalia, with 7,800 MT of refined sugar.
- Aljabriya: At anchor at Kandla, India, heading to Dar es Salaam, Tanzania, with 13,600 MT of VHP sugar.
- Lucky Trader: Underway from Paranagua, Brazil, to Mogadishu, Somalia, carrying 24,000 MT of VHP sugar.
- Sofia II: Underway from Kandla, India, bound for Berbera, Somalia, with 7,900 MT of sugar (type unknown).
- Mars J: Underway from Kandla, India, destined for Port Sudan, Sudan, carrying 33,450 MT of Indian refined sugar.
The market stability during the Christmas period extended into early January, with locally produced sugar maintaining a price advantage over imports from the EAC bloc. Import parities across Africa have stabilized since mid-December, with markets in Somalia, South Africa, and South Sudan continuing to show favorable import margins. However, no shipments were flagged for Kenyan ports this week, reflecting limited direct import activity.
Source: Kulea
Compiled by Victor Agut