Oct. 28 (Bloomberg) -- About 20 percent of all the sugar waiting to be loaded at ports in Brazil, the world’s largest producer of the commodity, will be shipped to China and Iran, according to data from Williams Servicos Maritimos Ltda.
Vessels heading to China will load 172,750 metric tons, while 111,800 tons will head to Iran, data from the shipping agency showed. Ships were waiting at the ports of Recife, Suape, Maceio, Vitoria, Santos and Paranagua yesterday to load 1.39 million tons of the sweetener, the data showed.
Sugar imports into China, the world’s second-largest consumer, will climb 20 percent in the 2011-12 season as local consumption outpaces production, according to Morgan Stanley.
Imports of the sweetener will total 2.76 million tons in 2011-12, up from an estimated 2.30 million tons in the previous season, the bank said in a report e-mailed Oct. 26.
“The persistent gap between consumption and domestic supply will likely prompt China to become a structural sugar net importer over the next five to 10 years,” Hussein Allidina, an analyst at the bank, wrote in the report.
“Malaysia, Egypt, Iran, and China still have to do some buying,” Michael McDougall, senior vice president at New York- based Newedge Group, wrote in a report Oct. 25.
Only one vessel, carrying 34,250 tons of sugar, was scheduled to sail to Russia, the data showed. A large harvest in the current season will reduce Russian sugar imports by 56 percent, according to C. Czarnikow Sugar Futures Ltd. The country was the largest raw-sugar importer in 2010-11, data from the London-based broker and researcher show.
Russia may produce 5 million tons of sugar from domestic sugar-beets in the season that started Aug. 1, according to the government. Carryover stocks are at 2 million tons and domestic use is estimated at 5.6 million tons, according to the data.
The country may not reduce the tax on imports of raw sugar next year, said Andrei Slepnyov, deputy economy minister. Its Sugar Producers’ Union urged the economy ministry to refrain from imposing a seasonal formula for the duty, which can see it cut from $140 to as low as $50 a ton from May through July depending on the price in New York, he said.
--With assistance from Marina Sysoyeva in Moscow. Editors: Sharon Lindores, Nicholas Larkin
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.