Lakay Business Special Report
In 2024, Brazil solidified its position as the world’s largest sugar exporter, shattering previous records for both volume and revenue. This surge was driven by a combination of global factors—most notably India’s export ban—and Brazil’s advantageous harvest conditions. Below, we explore the key data month by month, highlight the primary buyers and transport methods, and discuss major trends that emerged in this remarkable year for Brazilian sugar.
Top Destination Countries
1.Indonesia: 3.46 million tons (largest single buyer, ~9% market share).
2.India: 3.33 million tons (primarily importing raw sugar to refine domestically).
3.China: 3.02 million tons (minimal in the first half, surged later in the year).
4.United Arab Emirates (UAE): 2.51 million tons (mainly raw sugar for refining).
5.Algeria: 2.23 million tons (predominantly refined sugar, often shipped in containers).
A broad pattern emerged:bulk raw sugarwent mostly to Asia and the Middle East, whilecontainerized refined sugarflowed primarily to Africa.
Transport Methods
-Bulk Vessels:Roughly 90% of sugar exports, dominated by raw sugar in big carriers from ports like Santos and Paranaguá.
-Containers:About 10% of total exports (up from 9.4% in 2023). Containerization is increasingly favored for refined, bagged sugar shipments to diverse destinations—especially in Africa.
After pandemic-related challenges, container availability improved, and freight rates eased, allowing many mills and traders to switch to container shipping for high-value refined sugar. Bulk shipping, however, remains the workhorse for massive volumes of raw sugar.
Monthly Breakdown (2024)
Below is a concise month-by-month summary, detailing volumes, values, primary destinations, and noteworthy logistics points.
January
-Volume:3.17 million tons
-Value:US\$1.70 billion
-Key Buyers:India, Indonesia (raw); Algeria (refined).
-Transport:High utilization of bulk carriers (raw sugar) and moderate container use (refined).
Comment:January is typically slower, but this year started with an unusually strong export pace due to substantial carry-over stocks.
February
-Volume:~3.00 million tons
-Value:Estimated US\$1.5–1.6 billion
-Key Buyers:Indonesia, India (raw); Bangladesh, Morocco, Egypt (refined).
-Transport:Predominantly bulk for raw sugar; containers for refined cargoes.
Comment:Demand remained very high, nearly matching January’s daily loading rates despite fewer working days.
March
-Volume:~2.8–3.0 million tons
-Value:~US\$1.3–1.4 billion
-Key Buyers:Indonesia, India, China (raw); Nigeria, Côte d’Ivoire, Egypt, Bangladesh (refined).
-Transport:Slightly higher share of containerized refined sugar; bulk still leading for large raw shipments.
Comment:Marked the end of the old-crop export cycle. By Q1’s close, Brazil had already shipped around 9 million tons, setting a record start for the year.
April
-Volume:~2.5 million tons
-Value:~US\$1.2–1.3 billion
-Key Buyers:Indonesia, China (raw); Nigeria, Algeria (refined).
-Transport:Bulk shipments dipped; container usage rose proportionally for refined exports to Africa.
Comment:Transitional month, with the new Center-South harvest beginning. Exports remained stronger than the same period in 2023.
May
-Volume:~3.0 million tons
-Value:~US\$1.4–1.5 billion
-Key Buyers:Indonesia, India, China (raw); Morocco, Sudan, Egypt, Malaysia (mixed or refined).
-Transport:Bulk shipments surged again with fresh cane availability; containers continued at a healthy pace for refined sugars.
Comment:New-crop sugar flowed quickly to the global market, especially with India absent. Exports soared compared to April.
June
-Volume:~1.9–2.0 million tons
-Value:~US\$0.9–1.0 billion
-Key Buyers:Indonesia, China (raw); Bangladesh, Algeria, Nigeria (refined); Iran, UAE.
-Transport:Balanced between massive raw shipments (bulk) and notable container volumes for refined sugar. Dry winter weather supported smooth port operations.
Comment:Slight lull vs. May due to shipping schedules, but still a solid performance that kept Brazil far ahead of 2023’s pace.
July
-Volume:3.78 million tons
-Value:~US\$1.46–1.50 billion
-Key Buyers:Indonesia, India, China (raw); UAE (raw), Algeria (refined).
-Transport:Record-breaking bulk shipments; container volumes also high (~12% of total). Santos alone handled over 3.1 million tons of sugar.
Comment:First major production peak of the new harvest. A historic July, at that time the highest monthly sugar export figure ever recorded by Brazil.
August
-Volume:3.92 million tons
-Value:~US\$1.8 billion
-Key Buyers:China and Indonesia (raw); Bangladesh, Nigeria, Morocco (refined); Egypt, Iraq (raw).
-Transport:Bulk shipping again dominated (~90%), but container shipments were the highest in absolute tonnage all year (300–400 thousand tons refined).
Comment:Surpassed July’s record, with nearly 4 million tons shipped—crucial in meeting global demand amid ongoing supply deficits elsewhere.
September
-Volume:3.95 million tons (new all-time monthly record)
-Value:US\$1.818 billion
-Key Buyers:Indonesia, China, Egypt, Malaysia, Algeria, Morocco (mix of raw and refined).
-Transport:Nearly 3.2 million tons of raw sugar loaded in bulk, plus robust container flows for refined. Daily throughput averaged 188,000 tons, an extraordinarily high rate.
Comment:Broke the August record, cementing Q3 as the peak. By September’s end, Brazil had shipped 28.4 million tons year-to-date, up from 21.9 Mt in the same period of 2023.
October
-Volume:3.73 million tons
-Value:US\$1.76 billion
-Key Buyers:Indonesia (~423k), India (~395k), China (~394k), Egypt (~246k).
-Transport:Slight dip from September’s peak, but still extremely high. Bulk shipping remained dominant; container use stable for refined sugar.
Comment:Brazil officially broke its annual export record by October. Production was slightly off-peak, so some cargoes drew from inventories.
November
-Volume:3.39 million tons (down 7% vs. Nov 2023)
-Value:US\$1.63 billion (down 15.8% vs. Nov 2023)
-Key Buyers:Indonesia, China (raw); Malaysia, Algeria, Nigeria (refined).
-Transport:Fewer bulk vessels than Q3 peaks; container shipments also dipped, but overall logistics remained smooth.
Comment:First month in 2024 that came in below its 2023 equivalent—an expected slowdown as mills completed the crushing season. Still historically high, keeping year-to-date exports nearly 29% above 2023 levels.
December
-Volume:~2.8 million tons
-Value:~US\$1.3–1.4 billion
-Key Buyers:Indonesia (raw), Malaysia & UAE (raw from North-Northeast region), Nigeria & Algeria (refined), smaller quotas to the US/Canada.
-Transport:Higher proportion of containers (up to ~30%) as the main Center-South harvest ended. North-Northeast ports shipped smaller lots of raw sugar in Handymax vessels.
Comment:Lower volumes closed out the year—typical for December. Full-year total: 38.24 million tons, US\$18.6 billion in revenue, capping a record-breaking season.
Key 2024 Trends
1.Unprecedented Volumes
- The January–December total of 38.23 million tons set a new annual record, eclipsing previous highs. Two consecutive months, August and September, each surpassed the prior monthly record (~3.95 Mt each).
2.Global Demand & India’s Absence
- India’s ban on sugar exports created a supply gap. Indonesia, China, the UAE, and many African countries turned to Brazil, fueling enormous sales of raw sugar (87% of total).
3.Refined Sugar’s Africa Focus
- Algeria, Nigeria, Morocco, and others in Africa drove refined sugar sales. Refined shipments grew 12% year-on-year, with ~70% heading to African destinations, predominantly via containers or break-bulk.
4.Container Surge
- About 10% of total exports (nearly 3 million tons) went out in containers, mainly refined sugar. Ports like Paranaguá reported a multi-fold increase in containerized sugar, thanks to better container availability and stable freight rates.
5.Month-to-Month Volatility
- Seasonal harvest cycles (peak in July–September), shifting freight rates, and erratic buying (notably by China) caused fluctuations. Yet each month far exceeded historical averages.
6.Logistical Efficiency
- Bulk terminals and container facilities handled record throughput with few disruptions, aided by favorable weather and improved scheduling. Even near 4 million tons/month, Brazil’s sugar exports ran with minimal bottlenecks.
Conclusion
Brazil’s sugar export success in 2024 underlines the nation’s dominant role in global sugar markets. Buoyed by high demand, strong production, and a flexible logistics strategy that increasingly incorporates container shipping, exporters in Brazil met (and exceeded) the world’s needs. This robust performance had a noticeable effect on global sugar prices, helping to stabilize a market that might otherwise have spiked dramatically.
Outlook for 2025
Analysts generally expect a moderate downturn in 2025 exports, primarily because:
- India may partially return to the market.
- Weather uncertainties (El Niño) could influence cane yields.
- Domestic ethanol demand in Brazil may prompt some mills to divert sugarcane away from sugar production.
Still, 2024 set a new benchmark. Brazil’s capacity to ship raw and refined sugar across continents—through bulk vessels and containers—provides a flexible foundation for continued leadership in the sugar trade.
About Lakay Business
Lakay Business is a multinational import and export company, strategically positioned across Brazil, Ecuador, the USA, and the United Arab Emirates, with a robust network of partners throughout Latin America, Europe, and Asia. We specialize in delivering premium-quality products spanning agriculture, industrial metals, and precious stones.
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