Last week, wholesale sugar prices across major cities in Eastern Africa, including Tanzania, Djibouti, South Sudan, and Somalia, remained stable. However, brown sugar prices in Kenya saw significant increases, with Nairobi and Mombasa recording hikes of USD 38 and USD 30 per ton, respectively. Within the East African Community (EAC), Kigali reported the highest VHP sugar prices due to restricted flows from Uganda, while Nairobi had the highest brown sugar price in Kenya.
Regarding import parities, COMESA brown sugar emerged as the most affordable option for imports into Kenya amid rising local prices. Nevertheless, the landed costs for bagged brown sugar from COMESA FTA and non-FTA countries remained uncompetitive, with import parity margins of USD -81 and USD -90 per ton, respectively, for Mombasa. For Nairobi, these import costs were even more unfavorable at USD -170 per ton, making imports less attractive compared to local production.
Port activities for the week included the CS Sarafina, which sailed from Laem Chabang, Thailand, to Dar es Salaam to discharge 11,425 tons of refined sugar before proceeding to Mombasa with an additional 18,575 tons. Other notable port activities included refined sugar shipments to Dar es Salaam, Somalia, and Beira, Mozambique, with several vessels moored and at anchor in these ports carrying various types of sugar.
Kulea reported stable sugar prices across most markets in Eastern and Southern Africa, with notable fluctuations in Kenya. Brown sugar prices in the region are generally higher than in the previous quarter, reflecting increased demand and limited supply from regional sources. Import parity remained negative across all sources, highlighting the competitive advantage of local production in Kenya amid current market dynamics.
Source: Kulea
Compiled by Victor Agut of AFA - Sugar Directorate