Canal Sugar: Trial Production Begins in Egypt

Egypt’s Canal Sugar, situated in the midst of the Egyptian desert, has attracted a lot of attention from detractors since its conception, however, according to its CEO, commercial production will begin at the site in May 2021.

The factory, which aspires to be the world’s largest beet factory, is set to produce as much as 170k tonnes of white sugar in May and June as it aims to achieve a production of over 900k tonnes in 2022.

With Canal Sugar’s timelines going to plan, their production will provided a much needed boost to Egypt’s domestic sugar production, supporting forecasts that Egypt could soon transition from a net importer to a net exporter.

Suez Canal Blockage: The Aftermath

It’s more than a month since the world’s busiest waterway was blocked for six days, but the repercussions are still being felt the world over.

The blockage created a domino effect upon global supply chains, exacerbating already congested ports, further straining container shortages and delaying future shipments.

However, no one will feel these repercussions quite as acutely as the owners of the stricken Ever Given. Following the Suez Canal Authority’s rejection to settle the claim at $720 million, the Ever Given has been impounded until the Japanese owner pays the full $900 million being demanded.

Middle East Growth Forecast Upgraded amid Vaccine Success

The International Monetary Fund has revised its growth forecast for the Middle East, citing successful vaccine rollouts as a leading driver.

GDP for the Middle East and North Africa region is now expected to grow by 4%, up by 0.8% from the IMF’s October forecast.

Whilst each country’s ability to recover in 2021 will vary significantly across the region, the IMF recognised the successes of certain nations in their vaccine roll-out, adding that an accelerated vaccine roll-out across the region could create an additional 1% GDP growth in 2022.

Pakistan: Imports Delayed Once More

Pakistan’s state trade agency, Trading Corporation of Pakistan (TCP), has delayed its decision following its latest tender for 50k tonnes of refined sugar imports.

The tender, which closed on the 27^thApril, saw Gemini trade house low-ball the other participants, offering Brazilian-origin sugar at 447 USD/mt. All other bids were submitted between $535 (LDC) and $579 (Man).

After a series of failed recent tenders and domestic prices continuing to rally, many are hoping for a timely response from TCP to help mitigate against further shortages in country.

Saudi Arabia: Olive Branch Extended to Iran

Saudi Arabia’s Crown Prince Mohammed Bin Salman has ruffled the feathers of the Biden Administration as he announced that Saudi would like to work towards ‘special relations’ with Iran, amid rumours of a secret meeting between high profile officials from both sides.

Whilst the Crown Prince cited Iran’s negative behaviour, referencing its nuclear programme and support for outlaw militias, he went on to say that Iran played an important role in the Middle East’s prosperity. Despite this appearing to open a dialogue with Iran, the de-facto ruler of Saudi downplayed talk of a cooling of relations with the US, saying that there remains “no doubt that the United States is a strategic partner.”