Sugar refineries in the Middle East dare the bitterness of the weakening of profits

Sugar refineries in the Middle East work with less than their productive ability as a result of the decline in profits, according to the statements of the chairman of the Council of “Golf Sugar”, which has the largest refinery of sugar refunding in a harbor in the world. Jamal Al Ghurair, the managing director of the company, based in Dubai, said in an interview on the sidelines of the “Dubai Sugar Conference” that the white premium is a difference between raw and refined sugar price that gives some refineries to reduce production. The bonus, which is an indication of the cost of refining raw sugar, has recently moved between $ 90 a tonne, a level of less than $ 100, which is the minimum profit. Sugar refineries in the Middle East are one of the largest rough sugar importers, and they usually serve great demand areas in Asia and Africa. The sugar market in the Middle East dropped in the white bonus due to factors, including the low prices of white sugar due to the increase in production in Thailand, Europe and India, which helped the abundance of supplies in the market. Over the past few days, the grant between the March contracts has increased and the current period has exceeded $ 100. Refinement companies can get a boost if these levels continue in the coming months. Also read: Indian sugar exports are eroding and the cause “red form”. Investments in new refineries have also led to a surplus in the productive capacity in the region, and to maintain profitability, companies need to reduce operating costs and quickly handle the price fluctuations, according to Al Ghurair. He added that the “Gulf Sugar” worked by 70% of its production capacity last year, while other ranks worked at lower levels. During 2024, the company’s refinery in Dubai produced 1.6 million tonnes of sugar, a period in which the export restrictions imposed by India led to the high price of the refined product. Al Ghurair does not expect the same amount to be produced this year, but it has not given a specific estimate. “We will have a better indication after the March contracts expiry,” he added, referring to future sugar contracts to hand over March on the London Stock Exchange. He concluded that the high price or price difference between contracts before its expiry will be a positive signal for refining refineries.