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FINANCIAL NEWS
Khaleej holds ‘near record’ sugar on hand amid surplus
03 Feb 2015
(MENAFN) The Dubai-based refiner, Al Khaleej Sugar Co. has sufficient supply on hand to encounter most of 2015 amid signs which the global oversupply will cap price gains this year.
It has 1.5 million metric tons of sugar stored in transit to its refinery in dubai, its managing director Mr. Jamal Al-Ghurair stated in an interview that the plant is functioning at 60% of its capability.
“There is a lot of supply,” and inventories are “near a record,” al-Ghurair said on Sunday. “We’re getting shipments all the time.”
It’s been prevailing since 2010, resulting futures to fall 59% from its top since 1980 in 2011.
Low oil prices have had “no effect” on demand at Al Khaleej, al-Ghurair said. Brent crude has fallen 51% in the past year amid a global supply glut.
Al Khaleej considers purchasing more sugar from India, al-Ghurair said. About 80% of its raw sugar comes from Brazil, the world’s biggest supplier, he said.
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