Pakistan buying spree lifts White Sugar premium to 13-month high
White sugar futures in London surged up to 2.9% to \$491.50 per tonne, pushing its premium over raw sugar to \$125—the highest since July 2024—driven by Pakistan’s tender for 200,000 tonnes of refined sugar. Analysts warn tightening supplies could keep prices bullish into 2025, with December contracts strengthening.
August 21, 2025 (MLN): White sugar’s premium to the raw variety widened to the highest in more than a year as purchases by Pakistan boost demand for the refined sweetener, as Bloomberg reported.
Futures of white sugar rose as much as 2.9% to $491.50 a ton in London.
The premium to raw climbed as high as $125 a ton earlier on Wednesday, touching the widest since July 2024, according to figures compiled by Bloomberg.
The price differential is a key factor in determining whether refiners process raw sugar, with levels above $100 deemed profitable.
The market is scrutinising the volumes that Pakistan is committing to buy, after the country tendered for 200,000 tonnes of refined white sugar last week.
That comes as white sugar supplies are expected to tighten from the fourth quarter and into next year, according to Claudiu Covrig, lead analyst at Covrig Analytics.
“Pakistan remains a major driver of whites’ demand, continuously pushing white premium higher,” said Covrig. “The December contract is starting to look bullish amid scarce supply.”
White sugar rose 2.3% to US$488.60 a tonne in London. Raw sugar was up 1.2% in New York.
Arabica coffee fell 0.8% in New York.
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