In the latest market update, Nairobi and Mombasa saw slight price increases of 1.43% and 0.63%, translating to rises of USD 12.18 and USD 5.17 per ton, respectively. The rest of the East African Community (EAC) region maintained stable brown sugar prices, with Kigali leading at USD 1,009 per ton. Meanwhile, Mogadishu continues to offer the most competitive pricing for Very High Polarization (VHP) sugar at USD 690 per ton, maintaining its position as the most affordable market in the region.
In Kenya, import parity continues to favor COMESA FTA countries. The landed cost of bagged brown sugar from COMESA FTA and non-FTA countries stands USD 66 and USD 72 per ton above the local market price in Mombasa. EAC imports remain the least competitive option for Kenya, with an import parity of USD -163 per ton, showing that regional trade is not favorable for Kenyan imports at the moment.
Port Line-Ups: Several key vessels contributed to the sugar imports during the week:
- CS Sarafina: Moored in Mombasa from Laem Chabang, Thailand, carrying 30,000 MT of refined sugar.
- Atlas: At anchor in Yanbu al-Bahr, Saudi Arabia, heading to Dar es Salaam with 7,500 MT of refined sugar.
- Deniz ID: Underway sailing to Berbera, Somalia, with 27,000 MT of unknown sugar type.
- Eren Bulbul: Underway sailing to Moroni, Comoros, from Santos, Brazil, with 26,200 MT of LQW sugar.
- Suvari kaptan: At anchor in Kandla, India, heading to Bosaso, Somalia, with 9,500 MT of refined sugar.
- Golden ID: Moored in Kandla, India, heading to Berbera, Somalia, with 22,620 MT of VHP/refined sugar.
CS Sarafina previously sailed from Laem Chabang, Thailand, where it was expected to discharge 11,425 tons of refined sugar at Dar es Salaam Port before moving to Mombasa to offload the remaining 18,575 tons.
Kenya's rising brown sugar prices are largely due to stock constraints, pushing the cost up and creating unfavorable import parity for sugar from EAC countries. This has limited regional trade while restrictions on port activities further compounded the situation. With CS Sarafina being the only vessel flagged during the week, access to global sugar markets remains constrained.
Source: Kulea
Compiled by: Victor Agut of AFA - Sugar Directorate