Sugar price hike? Fire destroys one of world’s biggest sugar store
A fire ravaged Copersucar’s sugar terminal in Brazil on Friday, paralyzing operations of the world’s biggest sugar trader and putting 10 million tonnes of export capacity offline for six months or more.
However, sugar prices in the UAE and rest of the Middle East are unlikely to shoot up for now, in the wake of the fire.
Speaking to Emirates 24|7, sugar traders and producers said the fire may have damaged one of the largest sugar producers and a major supplier to the fourth biggest sugar refinery in the world, located in Dubai – Al Khaleej Sugar refinery in Jebel Ali.
“There is already enough supply in the market,” a senior official from Al Khaleej told Emirates 24|7.
Walid Al Shami, General Manager of Al Shami Sugar and Grain Packaging said he does not foresee an immediate increase in local sugar prices, because any losses of supply from Brazil, will be compensated for by new players in the market, especially India, which currently has an over-production of sugar.
“In the short run, sugar prices will not skyrocket as there is enough stock in the warehouses here,” he said.
“Sugar prices are in the acceptable levels and there is no possibility of sugar price reaching Dh 200 per bag in the UAE market,” he said.
“There is no need to panic as the fire in Brazil, will not cause a kneejerk reaction. Prices will remain stable at least for two more months,” said another leading sugar dealer in the UAE.
180,000 tonnes on fire