China's sugar output is expected to drop to 9 million tonnes in 2015/2016, while the sales volume is likely to continue growing, said Guangxi Sugar Association.
The association expects China to see a sugar shortage of more than 6 million tonnes in 2016, exceeding that of this year. China crushed sugar of 10.53 million tonnes during the 2014/2015 crushing season, down 20.8 percent on year, while the country's sugar demand is expected to be around 15 million tonnes, leading to a shortage of about 4 million tonnes this year.
Costs of sugar crushing are estimated at 5,100 yuan/tonne this year, under the 400-yuan/tonne sugarcanes, which would make the sugar mills remain stuck in losses, the association said. Guangxi Zhuang Autonomous Region is a major sugarcane-growing and sugar-production province of China.
Latest comments