S&P Global Platts has decided 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.
This follows a proposal note published October 2 - http://plts.co/BuFi30pLxao
Market feedback has confirmed 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 about 85% since 2016 to 385,568 mt in 2018, according to data from Thai Sugar Millers Corporation, with industry forecasts for a further decline to 200,000-250,000 mt in 2019.
Additionally, feedback has confirmed 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 discontinuation will affect the following assessments:
Raw Sugar Thai J-Spec Premium (SGAAA00)
Raw Sugar Thai J-Spec Flat Price (SGAAB00)
These prices currently 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.
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