IKAR in Mass Media

Russian May sugar imports seen at 1 mln T-analysts

20 мая 2010 года

MOSCOW, May 17 (Reuters) - Russian raw sugar imports in May are estimated at 600,000 to 1 million tonnes before coming to a halt after an import tariff hike from June to the end of 2010, the Institute for Agricultural Market Studies (IKAR) said.

"A more exact figure will depend on the capacities and the enthusiasm of importing companies," IKAR said in a monthly note seen by Reuters on Monday.

"Taking into account the prospect of the tariff to rise to $200 per tonne and above, imports of raw sugar may stop (after this month) until the start of the next year," it added.

IKAR said the total volume of raw sugar, which may be cleared by the customs in May and June, may reach 1.5 million tonnes, taking into account around 350,000 tonnes, which have already been imported to Russia, but not cleared by the customs.

Russia, the world's No.3 raw sugar buyer, has lowered its import tariff to $50 per tonne from $140, causing a flood of imports.

The tariff, which is pegged to the sugar price in New York, will rise to $200 per tonne in June and is estimated to rise to $239 per tonne in July, IKAR said.

In April 2010, Russia imported 190,700 tonnes of sugar and in May last year 350,700 tonnes.

Analysts and traders said monthly raw sugar import volumes in May could approach or even surpass an eight-year record.

Brazil remains the main supplier of sugar to Russia, although its share has shrunk to 84 percent from 92 percent mainly due to an increase of supplies from Argentina, Central American states and Peru, IKAR said.

Russia, which produces more than half of the sugar it consumes from domestic beets, is expected to raise the sowings area this year to 1.075 million hectares from 822,700 hectares last year, IKAR said.

It confirmed its forecast for the 2010/11 sugar refining of up to 4.2 million tonnes, up from 3.2 million a year ago.

"Taking into account active imports in May, remaining stocks -- estimated at 1.2 million tonnes at the beginning of May, and beet sugar the refining of which will begin in August -- the country will have sufficient sugar to cover its needs," IKAR said.

Source: Reuters | #sugar | Comments: 0 Views: 54

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