On January 6, 2025, Thai sugar stocks had a mixed day of trading after China announced a ban on importing syrup and pre-mixed powder from Thailand due to hygiene issues. Some companies like Khonburi Sugar and Khon Kaen Sugar saw their stock prices fall, while others, such as Buriram Sugar, managed to gain a little.
Experts from FSS International Investment Advisory believe that this ban will only have a small short-term effect on sugar stocks since the main product, raw sugar, isn’t affected by the ban. However, the exports of syrup and pre-mixed powders, especially to China (which buys 96% of Thailand’s syrup exports), may run into some difficulties.
Thailand produces about 8-9 million tons of sugar every year, with 70% of that being sold outside the country. While the syrup ban could impact those specific exports, it’s not expected to significantly disrupt the overall sugar industry, as most of the sugar is used in food and drinks.
If the ban continues for a while, the local sugar market might feel some pressure, but for now, it mainly affects syrup producers.
Find the latest supply chain report news at The Supply Chain Report. For international trade tools, see ADAMftd.com.
#ThaiSugarStocks #KhonburiSugar #KhonKaenSugar #BuriramSugar #SugarExports #SyrupBan #PreMixedPowderBan #ChinaBan #ThailandSugarIndustry #SugarMarket #FSSInternational #SugarTrade #HygieneIssues #SugarIndustryImpact #SugarExportChallenges
