Oversupply pressure pushes sugar prices down, metal prices weaken

Sugar prices plunge nearly 2%

At the close of trading on May 22, the industrial raw material market saw red covering 8/9 items in the group. Of which, the price of sugar 11 decreased by 1.69% to 383.6 USD/ton, while the price of white sugar also lost 1.93% to 488 USD/ton. According to MXV, sugar prices have remained low in recent times mainly due to concerns about excess supply in the international market.

According to the US Department of Agriculture (USDA), global sugar production in the 2025-2026 crop year is expected to reach 189.3 million tons, up 4.73% from the previous crop year, while demand will increase by only 1.4% to 177.9 million tons. Thus, the market is estimated to have a surplus of up to 11.4 million tons, after a surplus of 5.3 million tons in 2024-2025.

In Brazil, many mills are closely monitoring sugar and ethanol prices to balance production. If sugar prices continue to fall, mills in the country may shift to producing more biofuels to optimize profits, as most mills in Brazil have the flexibility to adjust their production lines to produce more or less sugar and ethanol, depending on the market price of both products.

If sugar prices fall below $374.8 a tonne, Brazil's production structure is likely to change, said the head of Sugar & Ethanol at brokerage StoneX.

On the weather front, recent dry conditions in central-south Brazil are expected to facilitate the sugarcane harvest after a slow start in April. Meanwhile, in India, the monsoon is forecast to arrive about a week earlier than usual, supporting a better sugarcane crop in the country.

Meanwhile, demand is showing clear weakness. According to data from the US government 's Customs and Trade Administration, imports of sugar and sugar products in the US in the first three months of the year fell sharply to 1.03 million tons, down 18% compared to the same period last year. For liquid imports, the import volume also fell 14.6% compared to the same period last year to 166.4 million liters.

Precious metals turn to weaken, ore prices under great pressure from China

According to MXV, the metal market did not escape the general trend when witnessing red covering most of the prices of key commodities. At the end of the trading session, the price of silver reversed and decreased by 1.27% to 33.22 USD/ounce while the price of platinum also decreased by 0.34%, falling back to 1,080 USD/ounce.

Precious metals prices came under pressure as the US dollar index recovered from three sessions of decline, rising 0.4% to 99.96 points. US Treasury yields, despite a slight correction during the session, were still up about 50 basis points since the beginning of May, thereby strengthening the attractiveness of the USD. A stronger greenback makes USD-denominated commodities such as precious metals more expensive for international investors, reducing demand and putting pressure on prices.

On the other hand, the decline of precious metals was somewhat limited thanks to the continued demand for safe havens. On May 22, the US House of Representatives passed President Donald Trump's new tax bill, which is expected to add $3.8-4.5 trillion to the US's already-over-$36 trillion public debt. This development has raised concerns about fiscal risks in the world's largest economy , especially in the context of the US having its public debt credit rating downgraded by Moody's due to concerns about persistent budget deficits and rising public debt.

In the base metals group, COMEX copper prices continued to increase slightly by 0.16% to 10,316 USD/ton. In contrast, iron ore prices turned down by 0.63% to 98.25 USD/ton. In yesterday's session, copper prices were supported by concerns about a serious supply shortage this year. Meanwhile, iron ore prices were under pressure due to a less optimistic consumption outlook in China.

Source: https://baochinhphu.vn/ap-luc-du-cung-keo-gia-duong-truot-doc-gia-kim-loai-dong-loat-suy-yeu-102250523094611843.htm