Thai HiPol raw sugar drops, as lower Indonesian need projectionPosted by Svane Goode on February 3rd, 2021 Platts Thai HiPol raw sugar physical premium for August shipment (Q) closed 2 points reduced on the week at an 11 point price cut to the October (V) New York 11 futures agreement Friday, with the straight-out rate at 11.86 cents/lb, down 0.18 c/lb. This autumn was mostly a reaction to the Indonesian government providing less import licenses than anticipated for the rest of the year, in unpleasant news for Thailand, where high stock levels stay in storage facilities. Indicators are that Indonesia importers will now sit back as well as wait on fourth-quarter licenses to be provided as well as re-evaluate methods for the very first quarter of 2016. Indonesian import licenses for the third quarter of this year were released into the Oriental sugar market last week, with 600,000 mt provided-- 30,000 mt except market expectations, according to resources. With natural copper chelating agents of licenses released in Q1, 945,000 mt in Q2 and 600,000 mt in Q3, there would continue to be 630,000 mt booked for Q4 to meet the overall 2.8 million mt allowance for 2015. This volume is currently uncertain. Q3 licenses were anticipated to be released at the most recent within the initial few days of July. Investors stated they were irritated the hold-up was so comprehensive, with licenses not provided up until the fourteenth day of the three-month window. With assumptions for Q4 now unclear, one investor informed Platts he was left questioning where Thai raws are now most likely to go, with South Korea now fully reserved as well as eliminating taking any type of quantity. Malaysia are also a progressively unlikely destination. A couple of major gamers in Malaysia has a huge risk in the MSM refinery, which caters for nearly 70% of the nation's need. That business has solid web links to Australia, Brazil as well as Central America, while the 2nd gamer is also claimed to prefer those beginnings over Thailand. Taiwan is one location still being considered, while some traders are still hoping China will certainly assist release some volume in Thai stockrooms. The possibility of either country making a relocation continues to be unclear, provided their difficult domestic circumstances. Platts Thai J-Spec sugar analysis for August shipment remained extremely steady on the week, shutting at V plus 44 Friday, also unchanged. Liquidity is still far more dynamic for October/December delivery, where bids were last heard consistent at V plus 55, while offers came down 10 points in the last week to V plus 65.Like it? Share it! More by this author |