BEIJING: China's most actively traded white sugar futures fell 3.7pc on Wednesday to 4,938 yuan ($715.66) per tonne, their biggest decline in nine months, after a Brazilian trade association said it expects exports to China to recover this year
Brazil's sugar industry group, Unica, said on Tuesday that China had agreed not to renew anti-dumping tariffs when they expire later this month
Unica said Brazilian exports to China dropped to 890,000 tonnes per annum last season from an average of 2.5 million tonnes per year before the antidumping tariffs were imposed
An increase in imports from Brazil, previously the world's top sugar producer, will pressure domestic prices, currently around 5,200 yuan per tonne in top producing region Guangxi, which is below production cost, Zhan Xiao, an analyst at Shanghai Buyun Investment Management, said
"It will have a very big impact on the domestic industry," Zhan said. "Losses at some companies will be very serious."
China is expected to produce 10.88 million tonnes of sugar in the 2019/2020 crop year, up from 10.73 million tonnes in the current season.
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