LONDON: Importers in Iran have bought up to 250,000 tonnes of Brazilian raw sugar in the first purchases in months as the country looks to bolster strategic stocks, trade sources said on Tuesday.
The sources said the cargoes were for February shipment, adding that the last time Iran tapped the international market was in the third quarter of last year.
"Iran had been absent for months but the extent of their buying has been a surprise," one source said. "Prices have been lower so it was an opportunity to step in."
Another source added: "There was expectation that Iran would have bought cargoes later in the quarter as their domestic crop looked more favourable."
The cargoes were likely to be shipped in four to five consignments, the sources said.
Iran's new year celebrations in March are a time of increased sugar consumption.
Trade sources said the purchases were also likely to have been made to ensure there were sufficient stocks before the presidential election in May.
One of the trade sources said Iran had issued import permits for 400,000 tonnes of raw sugar and further purchases were likely in coming weeks.
The sources said Iran's annual raw sugar imports averaged around 900,000 tonnes.
International sanctions were lifted on Iran over a year ago after a nuclear deal was signed with world powers but Tehran continues to struggle with accessing international banking, which has affected its ability reap the full trade benefits.
U.S. sanctions are still in place and major Western lenders remain wary of potential fines. This has been compounded by concerns over additional sanctions by U.S. President Donald Trump's administration.
Earlier this month, Ayatollah Ali Khamenei said Iran's President Hassan Rouhani must do more to improve the economy, in rare public criticism by the supreme leader.
Comments
Comments are closed for this article.