Chinese government postpones auction of state sugar reserve

The Chinese government has postponed the auction of 92,000 tons of sugar from the state reserve, which had been intended to stabilize the domestic market and stimulate consumption.

The auction, which had been set for August 15, had yet to be rescheduled, said a statement from the Ministry of Commerce.

The National Development and Reform Commission, the Ministry of Finance and the Ministry of Commerce in June announced 552,000 tons of the state sugar reserve and Cuban imported sugar would be sold on the domestic market.

The government planned to auction 92,000 tons per month from June to September.

Che Yong, an analyst with the New Ages Futures, said the postponement would trigger a price rise on the futures market.

Sugar spot prices had been lower than the futures price, which suggested an abundant supply, Che said.

The high price of sugar in the first half and increasing supply of substitutes such as electrolytic sugar had restrained the demand, he said.

Source: Xinhua