Platts proposes to discontinue Thai J-Spec raw sugar assessment from Jan 2

S&P Global Platts is proposing to discontinue the FOB Thai J-Spec raw sugar assessment, which reflects Thai raw sugar primarily for the Japanese market, effective January 2, 2020, due to a change in market dynamics.

Platts understands that Thai production of J-Spec raw sugar has been on the decline since 2017 as Japanese buyers have switched to Australian cargoes mainly and also due to better economics for Thai mills to produce Thai Hi Polarization raw sugar.

Thai J-Spec exports to Japan have fallen by approximately 85% since 2016 to 385,568 mt in 2018, according to data from Thai Sugar Milling Corporation, with industry forecasts for a further decline to 200,000-250,000 mt in 2019. Additionally, Platts understands that nearly all of Thai J-Spec export volumes to Japan are now sold on a long-term contract basis, with very little allocated to the spot market.

The proposed discontinuation will affect the following:

Raw Sugar Thai J-Spec Premium (SGAAA00)

Raw Sugar Thai J-Spec Flat Price (SGAAB00)

These prices appear on Platts Agriculture Alert page 2510, in the Platts Kingsman Daily Sugar Market Report and in the Platts price database under the codes above.

Platts will continue to publish assessments for FOB Thai HiPol raw sugar and Thai 45i refined sugar.

Please send questions, comments or feedback by October 31 to asia_ags@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.