Nordzucker Post 01/2021 - 28 January 2021

Sugar markets remain volatile

After the Corona shock in spring last year, sugar prices on the world market have recovered in recent months and closed the year at 344 Euro per ton. In addition to the continuing high demand for raw sugar from refineries, especially in China and Indonesia, higher ethanol sales in Brazil, a smaller harvest in Thailand and lower export subsidies in India are likely to be responsible for the price increase. According to analysts, a global deficit in the 2019/20 sugar marketing year should be followed by a balanced world market in 2020/21. Both of these factors have a stabilizing effect on prices. 

The EU sugar market has responded to the situation on the world market in recent months with a stable price level. The spot markets have meanwhile reacted and are trading at higher level. For sugar production in 2020/21, the EU Commission lowered its own November forecast in December and now only expects production of 15.6 million tons (EU+UK). It remains uncertain what effect a drop in demand due to the Corona pandemic and the lockdown in Europe will have. 

The Corona pandemic and the lower beet harvest in some member states show once again that we are dealing with very volatile markets in sugar. CMO Erik Bertelsen is very satisfied with the way the realigned sales strategy has been implemented at Nordzucker: “I am confident that our strategy will help Nordzucker to maintain its position as a leading global sugar supplier in the future and to offer our customers the right level of quality and service.”