KUALA LUMPUR: The global sugar market is facing its largest supply shortage in five years, allowing MSM Holdings Bhd to bolster its exports. MIDF Research said the anticipated supply tightness of sugar in 2020, which is mainly driven by lower global sugar production, especially from India, has lifted the commodity’s global price. We view that the current market price of above US$13 per pound would discourage manufacturers to procure directly from abroad. MIDF said the recovery of the global raw sugar price amidst a global sugar deficit has given the group a breather as both the lower sugar stock levels at key markets and that the current premium white sugar prices have over raw sugar price are expected to bode well with the group. “Coupled with no sight of new AP issued to local manufacturers and increasing global raw sugar prices, this could increase the bargaining power of the group to negotiate a better pricing in its home market.

Source: New Strait Times February 05, 2020 04:07 UTC