USDA pegs China year to Sep 2018 sugar import dn 19% at 4.2 million tonne.

China is likely to import around 4.2 million tonne of sugar in 2017-18 (Oct-Sep), 19.2% lower than the estimate for 2016-17. China imports in 2016-17 are seen at 5.2 million tonne. Higher domestic production and tighter expected government control over imports will likely result in a reduction in imports. Industry analysts expect further tightening of import policies after the commerce ministry of China, in September, announced safeguard measures to investigate high sugar imports. The ministry has delayed announcing the result of the probe till May 22. China imported around 1 million tonne of sugar in the first five months of 2016-17 (Oct-Sep). USDA has also raised the estimate for sugar production in China for 2017-18 to 10.5 million tonne from an estimated 9.5 million tonne in the current year. Sugar production is expected to benefit as high prices of the commodity can make sugar mills profitable. Estimated China sugar consumption in 2017-18 at 15.8 million tonne, up 200,000 tonne from 2016-17, as sugar prices are seen easing next year due to high production.