SunSirs: Sugar Stocks Fall, Chinese Market Prices Fall by 0.12%

　　At the beginning of this week, the average price of first-grade sugar was 5680 yuan/ton, and the average price of first-grade sugar was 5673 yuan/ton on weekends. The price dropped by 0.12% and the price rose by 0.29% compared with the same period last year.

　　Market analysis

　　Sugar:

　　The general trend of domestic white sugar and international raw sugar prices is the same, and the overall center of gravity continues to rise, but the increase is not as good as that of international raw sugar. The main reason is that the domestic sugar price was much higher than the international raw sugar price in the early stage, the price difference gradually narrowed, the import protection policy ended, and the additional imports were slowly liberalized. The future rise and fall are expected to converge.

　　From the perspective of domestic sugar supply and demand, sugar consumption will increase in 2021, and ending inventory will decrease. Imports are decreasing, spot prices are firm, and sugar supply and demand are in a tight balance. Imported syrups are included in the taxation management. According to the latest data, imported syrups have dropped significantly. In June, 62,200 tons of syrup were imported, and a total of 232,000 tons were imported from January to June, a year-on-year decrease of 239,200 tons.

　　Forecast

　　Domestic supply and demand are likely to improve, and fundamental drivers are gradually appearing. In 2021, the fundamental drivers of sugar will increase, and Zhengtang’s valuation is expected to continue to be repaired.