REPORTS

The fundamentals have not changed during the period and increasing selling pressure also by Thai producers with their harvest progressing well will reduce the cap still further. There is still no sign of demand stepping up and no action as yet by China to allow reduced duty imports of raws (as was being rumoured) As reported by Sugarinfo Net through ECRUU yesterday, Chinese refineries capacity utilization has been running at 25.4% in 2017 from 39.8% in 2016 due to control on imports and the high tariffs. It is no wonder then that the refineries are lobbying Government to allow raws imports. In the meantime , the Indian Government has been mulling over the possibility of increasing import duties on raw and refined sugar to 75-80% in order to keep domestic prices from dropping too far as a bumper harvest is expected this year. With Pakistan around as a large exporter of whites this year, it would seem a measure of protection. All in all these are not favourable signals that would point to consumption increasing.