Asia Pacific (Jan – Oct) 2019

Malaysian Palm Oil Exports Performance to Asia Pacific Region
(Jan – Oct 2019)
A Review on MPO Performance

NOCOUNTRYJan-Oct 2019Jan-Oct 2018Diff (MT)Diff (%)
1Philippines539,637562,355-22,718-4.04
2Vietnam490,211394,01396,19824.41
3Japan415,160369,19645,96412.45
4South Korea353,830310,16443,66614.08
5Singapore303,822326,352-22,529-6.9
6Taiwan183,139179,5083,6312.02
7Indonesia162,9931,339161,65412,074.90
8Australia128,154114,48613,66811.94
9Myanmar64,45274,369-9,917-13.33
10New Zealand18,59619,517-921-4.72
11Papua N. Guinea8,48410,838-2,354-21.72
12Brunei6,9736,961110.16
13Fiji3,3612,69766424.61
14Cambodia1,3981,690-291-17.25
15Mongolia1,0711,303-232-17.8
16Laos2780278#DIV/0!
17Vanuatu142148-6-4.12
18Tonga962471295.61
19Kiribati852065321.82
20Samoa83106-23-21.56
21Solomon Island72169-97-57.55
22New Caledonia4949  –
23American Samoa21021#DIV/0!
24palau21021#DIV/0!
25Micronesia Federation18018#DIV/0!
26Tuvalu2208.1
27Nauru024-24-100
 Grand Total2,682,1482,375,329306,81812.92

During the period of January to October 2019, Malaysian palm oil export to the Asia Pacific region increased by 306,818 MT or by 12.92% compared to the last year, was mainly due to the higher imports by Vietnam and Indonesia. Philippines retained its position as the main destination of Malaysian palm oil exports despite a decrease of 22,718 MT or by 4.04%. It was reported that high supply of copra in the Philippines resulted in higher production of coconut oil which increased by 600,000 MT for the first half of 2019.

However, dryness in late 2018 and early 2019 as well as the looming downturn of the biological yield cycle will likely see a decline in copra production in the remainder of 2019 and primarily in the first 6-8 months of 2020. As coconut oil production is cyclical, Philippines will continue to import high volume of palm oil for their need in various sectors in the country that has shown positive GDP growth over the years which is also reflected in increased manufacturing.

Malaysian palm oil exports to Vietnam showed an increase 96,198 MT or 24.41%, most likely due to lower crushing of soybeans as there was lower demand of soybean meal from the livestock industry due to African Swine Fever (AFS). The disease spread to 58 out of 63 municipalities and provinces across the country with 2,637,051 pigs depopulated, equal to nearly 9.4 percent of the country’s total swine population. Rabobank Group projected Vietnam’s pork production will likely decrease by more than 10 percent this year.

For the period under review, Malaysian palm oil export to Japan and South Korea also showed an increase by 45,964 MT or 12.45% and 43,666 MT or 14.08% respectively. Palm oil consumption in South Korea is expected to increase this year due to increase demand from biodiesel sector and stable demand from other food processing sectors. The mandate of biodiesel has maintained at 3% since 2018 from the previous at 2.5% minimum. According to USDA report, Japan is expected to increase imports of palm stearin oil to meet demand under Japan’s Feed-in Tariff (FIT) for energy generation. For the period under review, import of RBD stearin in Japan increased by 22.35% or 19,697 MT to 107,811 MT.

Breakdown of MPO Exports to the Asia Pacific Region (MT) Jan – Oct 2019

Malaysian Palm Products Export to Asia Pacific Region  (By Products)
PRODUCTJan-Oct 2019Jan-Oct 2018Diff (Vol)Diff (%)
RBD PL1,336,2511,317,04719,2041.46
RBD PO413,686357,06856,61715.86
RBD PS329,791189,155140,63574.35
PFAD191,988138,53753,45138.58
CPO INTERNATIONAL SUSTAINABILITY AND CARBON CERTIFICATION97,50541,51055,995134.90
CO / DPL91,166102,107(10,941)(10.72)
Others221,762229,905(8,143)(3.54)
Grand Total2,682,1482,375,329306,81912.92

The main imported Malaysian palm products is RBD palm olein with the share of 50% of total Malaysian palm oil import in the Asia Pacific region. For the period of Jan – Oct 2019, import of CPO International Sustainability and Carbon Certification (ISCC) recorded the strongest growth with 55,995 MT or 1           134.9% to 97,505 MT compared to the same period last year. The main importer of CPO ISCC is Singapore.

Breakdown of MPO Exports to the Philippines (MT) Jan – Oct 2019

Malaysian Palm Products Export to the Philippines  (By Products)
PRODUCTJan-Oct 2019Jan-Oct 2018Diff (MT)Diff (%)
RBD PL489,264504,037(14,773)(2.93)
RBD PO20,20831,614(11,406)(36.08)
CO / DPL14,03512,1111,92515.89
RBD PS8,7508,4532983.52
Others7,3816,1421,23920.17
Total539,637562,355(22,718)(4.04)

Breakdown of MPO Exports to the Vietnam (MT) Jan – Oct 2019

Malaysian Palm Products Export to the Vietnam (By Products)

PRODUCTJan-Oct 2019Jan-Oct 2018Diff (MT)Diff (%)
RBD PL345,616317,18728,4298.96
RBD PO120,06949,98970,079140.19
RBD PS22,83724,036(1,199)(4.99)
CO / DPL724285439154.43
Others9652,515(1,550)(61.63)
Total490,211394,01396,19824.41

Source: MPOB, Oil World & USDA


For more info please contact Mrs Rina Mariati
Email : rina@mpoc.org.my

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