IKAR in Mass Media

Russia May sugar imports seen down year-on-year

11 мая 2006 года

MOSCOW, May 11 (Reuters) - Russia will import 360,000 tonnes of raw sugar in May, about the same as last month but 10 percent less than a year ago as low domestic prices make refining sugar less profitable, a leading analyst group said on Thursday.

"Domestic prices in April and May have shown a negative margin on raw sugar processing," the independent Institute for Agricultural Market Studies (IKAR) said in a monthly report.

IKAR said it cost an estimated $714 to produce a tonne of white sugar, ex-works Krasnodar (19.24 roubles a kg), while on May 10 it was being offered in the southern Russian city at $683 a tonne (18.50 roubles a kg).

"Demand remains low. Companies keep processing raws, while discharge of raw sugar and expected arrivals lag behind the 2005 volumes," IKAR said in the report.

Russia, the world's largest raw sugar buyer, imported 357,000 tonnes in April 2006. Raw sugar imports in April and May 2005 were 396,000 tonnes and 400,000 tonnes respectively, IKAR data showed.

Domestic stocks were 1.476 million tonnes of raw sugar and 228,000 tonnes of white sugar at the beginning of May, compared to 1.499 million tonnes and 334,000 tonnes respectively at the start of May 2005.

Russia had this year refined just 953,300 tonnes of white sugar from raws as of May 3, compared to 1.052 million tonnes a year ago, data from industry lobby the Russian Sugar Producers Union showed.

IKAR said it expected prices in Krasnodar to remain between 18.50 and 19.00 roubles a kg in May. But if prices in New York start rising, domestic companies may raise offers prices, the group said.

Demand for sugar is expected to rise from the end of May, ahead of a seasonal peak, when summer heat will push up demand from producers of ice cream and soft drinks and people will start making fruit jam at home, IKAR said.

IKAR estimates Russia will consume 5.828 million tonnes of white sugar this year, compared to 5.863 tonnes in 2005.

Of this, it is expected to refine 2.580 million tonnes from imported raws -- down from 3.105 million in 2005 -- and another 2.678 million tonnes from domestic beet, up from 2.481 million tonnes last season, IKAR said.

Source: Reuters | #sugar | Comments: 0 Views: 66

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