Feb. 13 (Bloomberg) -- The sugar deficit in China, the world’s second-largest consumer, will deepen in the coming season as demand increases more quickly than supply, according to Morgan Stanley.
The country’s sugar consumption will exceed production by 2.5 million metric tons in the 2012-13 season starting in October, up from 2.3 million tons in 2011-12, the bank said in a report e-mailed today. Demand will rise 1.9 percent to 16.3 million tons next season as output gains 0.6 percent to 13.8 million tons, it said.
“We expect Chinese import demand to remain robust,” Hussein Allidina, head of commodities research at Morgan Stanley in New York, said in the report. “China will likely continue relying on imports to replenish state reserves and fill its own domestic production shortfall.”
Global sugar supplies will outpace demand by 7.7 million tons in the current season, the bank said. The surplus may fall to 4.9 million tons in the 2012-13 period, it said.
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