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CHAIRMAN’S DELIVERING MSM MANAGEMENT DISCUSSION GROUP FINANCIAL
STATEMENT VALUE OVERVIEW & ANALYSIS REPORT

buSINESS

REVIEW

RAW suGAR sOuRcinG & PROcuReMent

36

MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020

Performance 2020 2019
“Despite the pandemic, Procurement of Raw Sugar (tonnes) 1,092,869 923,895
NY11 prices in 2020 has
been generally favourable Physical Trading of White Sugar (tonnes) 225,779 88,500
for the Group, trending
between USD11.00 –
15.00 cents/lb. The stable
prices were contributed
from high production in 2021 PRIORITIES:
Brazil which balanced
out shortages from Secure our raw sugar for the year below the market average, to help
Thailand due to extreme the Group in achieving the lowest possible production cost
drought. The drought
in Thailand is expected
to prolong whilst the MAINTAINING MARKET LEADERSHIP
situation in Brazil remains The year’s focus was directed towards minimising the Group’s production cost by
encouraging for raw sugar securing the lowest possible price of raw sugar amid global supply tightness due to
production. However, production shortages from Thailand and the increased trend of Crude Oil prices.
the price outlook is
bullish mainly due to Through sustained hedging practices, MSM was able to secure Raw Sugar
prices at USD12.70 cents/lb which was below both the market average of
the projected post- USD12.89 cents/lb, and the budgeted USD13.00 cents/lb. Towards better and
pandemic economic more informed decision making, weekly Trading Committee meetings commenced
recovery, improvements during the year to keep the Group’s top management updated and informed on
in crude oil price and the current global sugar situation.
weather risks in Brazil.”