Futures and Commodity Market News

Sun May 11, 2008

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BEIJING, May 06, 2008 (AsiaPulse via COMTEX) -- Though the price of white sugar in China has fallen to near cost levels at present, a big price rise is unlikely to occur this year because of oversupply.

Currently, sugarcane pressing for this crop-year in the country's main sugar production bases, including Guangxi, Yunnan and Zhanjiang, has come to the end, and the general demand-supply situation for the year is basically set, with no unexpected circumstances in the consumption aspect forecast to take place.

According to estimation by the China Sugar Association, China's domestic sugar production in the current crop year amounts to some 14.50 million tons, plus about 250,000 tons of imports, which means the total supply will reach a new record high of 14.75 million tons.

Meanwhile, even with expectations for additional consumption during the Beijing Olympics, the nationwide consumption this year is unlikely to exceed 13.50 million tons, up from about 12 million tons in 2007. Accordingly, there will be an oversupply of over one million tons.

(XIC)

(C) 2008 Asia Pulse Pte Ltd

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