Yunnan, Guangxi's sugar wholesale price has recently exceeded 6,000 yuan / ton mark, setting a new high in 15 years. With sugar prices substantially, the downstream companies are brewing price increases. China Tangyeyanjiu Inc. will increase prices in all 13% sugar.
    The industry believes that next year the average price of sugar will remain at 6,000 yuan / ton.

    13% of various sugar prices

    Reporter learned from relevant sources, Shanghai, China's major supermarkets have already received notification Tangyeyanjiu company prices, all types of sugar prices will be 13% full.

    Previously, Yangzhou, Shandong, prices have entered the season around, Yangzhou sugar prices generally rose 5% to 10%, sugar has bid farewell to 4 yuan per catty.

    At the same time, the downstream products of sugar fruit sugar, candy began to price increases. Shanghai Golden Monkey Food Co., Ltd., according to the staff, the plant ex-factory price of products has increased, but rose less than 10%. Shandong, Xuzhou large wholesale business executives, said, "With the rising price of sugar, candied fruit has significantly increased the purchase price, the current provider for further price increases are still brewing."

    Yesterday, the Shanghai Branch of Rabobank Jiangchuan analyst, told reporters that "the cost of downstream product prices from rising, because of the recent wholesale price and the price of sugar indeed rising." As of yesterday, Beijing, Xi'an, Yiwu, Wuhan, Hefei , Zhengzhou, Fuzhou, Shanghai, Nanjing, Qingdao, Changsha, Nanchang, Harbin, Langfang, the wholesale price per ton of sugar and other places are far more than 6,000 yuan, a record high after another.

    Corresponding rise in corporate profits of sugar

    With sugar prices rise, corporate profits have gone up domestic sugar industry. CICC's report pointed out, the new minimum purchase prices will be sugarcane crop at 400 yuan / ton or more, sugar industry average tax (VAT) cost will be 4300 yuan / ton. The current wholesale price of around 6,000 ton of sugar, Nanning Sugar pre-tax gross margin will reach 32% in the first half of this year gross margin was 23% of Nanning Sugar.

    The pattern of demand will support the sugar price to rise. It is understood that the 2009/2010 crop season, the total domestic sugar supply is 1200 tons, but total demand has reached 13.8 million tons. Even taking into account the previous quarter's inventory of sugar, still can not meet demand. Although the 2010/2011 crop supply has not yet announced, but sugar consumption has increased from 14 to 15 million tons.