According to the Vietnam Sugarcane and Sugar Association, Vietnam's sugar prices are at their lowest, lower than both ATIGA sugar producing countries and China. Meanwhile, the two "giants" of Vietnam's sugar industry announced tens of thousands of billions in revenue in 2024.
Vietnam sugar prices are at their lowest.
The Vietnam Sugarcane and Sugarcane Association has just released a report on sugarcane production for the 2023-2024 crop and a production plan for the 2024-2025 crop. Accordingly, starting from January 2025, the sugarcane industry has officially entered the 2024/2025 crushing season with all 24 factories having received sugarcane. The cumulative output since the beginning of the season has been 2.3 million tons of sugarcane and 240,000 tons of various types of sugar.
Regarding world sugar prices, information from the ISO organization said that in the first half of January 2025, the trend of commodity trading prices for both raw and white sugar decreased. Raw sugar prices traded below 18 cents/pound, the lowest level since mid-August 2024, in the context of improved supply prospects.
The Indian government has approved 1 million tonnes of sugar exports for the 2024-25 season, adding to the global sugar market. At the same time, the prospect of increased sugar exports from Thailand due to the suspension of syrup exports to China has also contributed to the downward pressure on prices.
However, the trend reversed in the second half of January 2025 as adverse weather and currency fluctuations in major producing countries constrained global supplies. Drought in Brazil and floods in Thailand damaged sugarcane and sugar beet crops, which could reduce yields and limit both domestic and export supplies.
In addition, currency fluctuations, particularly the weakening of the Brazilian real, have made sugar more expensive for foreign buyers, reducing export demand. Meanwhile, India’s sugar production is expected to decline by 12% by 2025 due to reduced cane supply and increased diversion to ethanol production, further tightening global supplies.
Farmers in Ninh Thuong commune, Ninh Hoa town, Khanh Hoa province harvest sugarcane. Photo: Khanh Hoa Newspaper
Regarding world sugar prices, the average monthly raw sugar price is 17.96 cents/lb, down sharply from 19.23 cents/lb in December 2024 and 20.44 cents/lb in November 2024. The average monthly white sugar price is 496.37 USD/ton, down from 529.06 USD/ton in December 2024 and 556.65 USD/ton in November 2024.
Regarding domestic sugar prices, January 2025, demand was weak despite being the month of preparation for Tet while the abundant sugar supply included sugar produced from sugarcane of the old crop year 2023/24 that had not been fully consumed, plus sugar produced from the new crop year 2024/25 and imported sugar from ASEAN countries continued to bring sugar into the market through direct official imports and smuggling through the Southwest border along with imported liquid corn syrup, the market was in a state of oversupply. Domestic sugar prices decreased and were low compared to sugar prices of sugarcane growing countries in the region (Indonesia, Philippines and China).
The price of sugar produced from domestic sugarcane depends on the sugar grade (quality and grain size) and fluctuates as follows: white sugar from 19,300 - 20,000 VND/kg, refined sugar from 21,200 - 21,800 VND/kg, and brown sugar from 20,300 VND/kg.
According to the Vietnam Sugarcane and Sugar Association, compared to domestic sugar prices in the region including sugarcane producing countries in the ATIGA bloc and China, Vietnam's sugar prices are at the lowest level.
According to the Vietnam Sugarcane and Sugar Association, in February 2025, demand was weak due to the post-Tet market while the abundant sugar supply included sugar from the new crop 2024/2025, and unsold sugar from the 2023/2024 crushing crop. The market continued to be in an oversupply situation, in which illegal sugar and sugar imported from ASEAN continued to dominate the market, making sugar produced from sugarcane difficult to consume.
In March, abundant sugar supply is forecasted, including sugar produced from sugarcane in the new crop year 2024/25, along with smuggled sugar and imported sugar from ASEAN countries, continuing to bring sugar into the market. Meanwhile, the sugar market continues to shrink due to imported high-fructose corn syrup, leading to an oversupply of sugar. Domestic sugar prices are falling and are low compared to sugar prices in the sugar-growing countries in the region (Indonesia, the Philippines and China).
How do the two "giants" in the sugar industry do business?
Thanh Thanh Cong - Bien Hoa Joint Stock Company (stock code: SBT) is currently the largest sugar company with over 46% of the domestic market share. This sugar giant has a raw material area of over 64,000 hectares in Vietnam, Laos, and Cambodia, with a total production capacity of 4,250 tons of sugar per day.
Over the years, Thanh Thanh Cong - Bien Hoa, chaired by Ms. Dang Huynh Uc My, has always been the leader in both revenue and after-tax profit, even when the sugar industry faced difficulties.
According to the recently released financial report for the fourth quarter of 2024, Thanh Thanh Cong - Bien Hoa recorded a profit after tax of VND 211.6 billion, an increase of 37.3% over the same period last year. In the whole year of 2024, the company's revenue reached nearly VND 30,000 billion, an increase of 15.8%, while accumulated profit reached VND 827.8 billion, a sharp increase of 44% compared to 2023.
In addition to positive business results, SBT continues to promote investment in fixed assets in 2024. As of the end of the fourth quarter, the original value of the company's fixed assets reached VND 11,061 billion. Meanwhile, the company maintained a stable charter capital of VND 7,621 billion.
In 2024, Quang Ngai Sugar Joint Stock Company's revenue will reach VND 10,315 billion, up 2.2% compared to 2023, while after-tax profit will reach VND 2,377 billion, up 8.9%.
Another "giant" in the sugar industry in Vietnam is Quang Ngai Sugar Joint Stock Company (stock code: QNS) with Mr. Vo Thanh Dang as General Director.
In addition to An Khe sugar products, Quang Ngai Sugar Joint Stock Company is also the owner of a number of brands such as: Thach Bich mineral water, Vinasoy soy milk, Dung Quat beer, Biscafun confectionery...
The financial report of the fourth quarter of 2024 of Quang Ngai Sugar Joint Stock Company shows that net revenue decreased slightly by 4% compared to the same period, reaching VND 2,174 billion. For the whole year of 2024, revenue reached VND 10,315 billion, up 2.2% compared to 2023, while profit after tax reached VND 2,377 billion, up 8.9%. This result far exceeded the set plan (VND 9,000 billion in revenue and VND 1,341 billion in profit), and marked the fourth consecutive year the company maintained impressive growth momentum.
At the end of 2024, the company's total assets reached VND13,800 billion, of which more than VND7,800 billion was cash and bank deposits. This strong financial source brought in VND262 billion in financial revenue during the year.
Equity capital was also consolidated, surpassing the VND10,000 billion mark. In particular, undistributed profit after tax reached over VND5,850 billion, much higher than the charter capital of VND3,676 billion.
Entering 2025, the Board of Directors of Quang Ngai Sugar Joint Stock Company set a revenue target of VND 10,000 billion and after-tax profit of VND 1,790 billion, down 2% and 25% respectively compared to the results in 2024.
Source: https://danviet.vn/gia-duong-viet-nam-thap-nhat-khoi-atiga-va-trung-quoc-2-dai-gia-nganh-mia-duong-van-co-doanh-thu-hang-chuc-nghin-ty-20250218135946383.htm
Comment (0)