Daehan Sugar is showing strength. The company, which operates in the raw sugar business, is gaining attention following news that international sugar prices have reached their highest level in 12 years.
As of 9:41 AM on the 13th, Daehan Sugar is trading at 2,840 KRW, up 3.46% from the previous day.
According to industry sources, on the 11th (local time), white sugar futures for May delivery on the London International Financial Futures Exchange (LIFFE) closed at $702.3 per ton, up $29.1 (4.3%) from the previous day. Compared to $534.4 per ton at the beginning of the year, this marks a 31.4% increase over four months. This is the highest price since November 2011.
The sharp rise in sugar prices is attributed to a global supply shortage. In particular, India, the world's largest producer and second-largest exporter, has continued export restrictions since last year. The increase in international oil prices is also analyzed to be fueling the rise in sugar prices, as sugarcane, the raw material for sugar, is also used as a raw material for ethanol.
Meanwhile, Daehan Sugar operates businesses including sugar and processed products, as well as livestock distribution. As of the end of last year, food sales, including sugar, accounted for nearly half of total sales. The sugar and food division secures sales channels domestically through end-users, dealerships, and large discount stores, and overseas mainly through end-users and intermediate trading companies in Asian countries.
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