234 words / 1 minute reading time

China imported 470k tonnes of raw sugar between January and May 2020; just 16% of China’s annual import quota.
The small offtake is because the safeguard duty window theoretically expires on the 22^nd May 2020.
The refineries think the duty will return to 50% from 85% and are arranging for shipments with June arrival.

Could China’s Safeguard Duty Be Extended?

This is not out of the question.
A consultant expert at the Ministry of Agriculture recently called for the extension of the safeguard duty because they believe China’s domestic sugar industry still needs protection.
However, even if it does get extended, it won’t affect this year’s raws demand, because we think the demand was fully booked when the No.11 fell below 10c/lb back in April.
What’s more is that, even with the No.11 at 10.32 c/lb today, raws import parity is still positive under 85% duty.

Rosa Li

Rosa graduated from Jinan University in 2012 with a bachelor’s degree in Marketing. Rosa joined CZ in 2014 and has been an analyst for 7 years in our Guangzhou office managing the data capture, analysis and visualisation within the Chinese sugar markets utilising her skills in SQL, Python and VBA while also providing content for our platform CZ App. Rosa is also responsible for the localization of CZ App in China – CZ App WeChat, she also assists with the commercial marketing in China and works towards strategy with the trading team.