Thai HiPol raw sugar drops, as lower Indonesian demand projectionPosted by Svane Goode on February 3rd, 2021 Platts Thai HiPol raw sugar physical costs for August shipment (Q) shut 2 points reduced on the week at an 11 point discount to the October (V) New York 11 futures agreement Friday, with the straight-out price at 11.86 cents/lb, down 0.18 c/lb. This fall was greatly a reaction to the Indonesian government providing less import licenses than expected for the rest of the year, in uncomfortable information for Thailand, where high stock levels continue to be in storage facilities. Signs are that Indonesia importers will now unwind and await fourth-quarter licenses to be issued as well as re-evaluate methods for the initial quarter of 2016. chelating agent list for the 3rd quarter of this year were launched right into the Oriental sugar market last week, with 600,000 mt provided-- 30,000 mt except market expectations, according to sources. With 625,000 mt of licenses provided in Q1, 945,000 mt in Q2 as well as 600,000 mt in Q3, there would continue to be 630,000 mt scheduled for Q4 to satisfy the total 2.8 million mt appropriation for 2015. This volume is currently uncertain. Q3 licenses were expected to be issued at the most up to date within the first few days of July. Investors stated they were discouraged the hold-up was so considerable, with licenses not issued till the fourteenth day of the three-month window. With expectations for Q4 now unclear, one trader informed Platts he was left questioning where Thai raws are currently more than likely to go, with South Korea now fully scheduled as well as ruling out taking any kind of quantity. Malaysia are additionally a significantly not likely location. A couple of major gamers in Malaysia has a big stake in the MSM refinery, which provides for practically 70% of the nation's need. That firm has strong web links to Australia, Brazil and also Central America, while the second gamer is additionally stated to favor those origins over Thailand. Taiwan is one location still being taken into consideration, while some investors are still really hoping China will certainly assist launch some quantity in Thai storage facilities. The opportunity of either nation making a step remains unclear, given their tough domestic circumstances. Platts Thai J-Spec sugar analysis for August shipment continued to be very stable on the week, closing at V plus 44 Friday, additionally the same. Liquidity is still a lot more lively for October/December shipment, where proposals were last heard stable at V plus 55, while offers came down 10 factors in the recently to V plus 65.Like it? Share it! More by this author |