Asia Pacific (Jan – Sep) 2019

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

NoCountryJan-Sep 2019Jan-Sep 2018Diff (MT)Diff (%)
4South Korea324,089287,60236,48812.69
10New Zealand12,53818,370(5,832)(31.75)
11Papua N. Guinea6,9429,090(2,147)(23.63)
19Solomon Island72169(97)(57.55)
21New Caledonia4949
23Micronesia Federation18018N/A
 Grand Total2,382,5912,139,779242,81211.35

During the period of January to September 2019, Malaysian palm oil export to the Asia Pacific region increased by 242,812 MT or by 11.35% 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 slight decreased of 5,084 MT or by 1.04%. It is reported that high supply of copra in the Philippines which made export of coconut oil 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 decimate 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 improvement with an increase 64,038 MT or 18.13%. The increase of Malaysian palm oil import is 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 South Korea and Japan also showed an increase by 36,488 MT or 12.69% and 26,853 MT or 7.91% respectively. The increase in the palm oil import in South Korea is mainly due to high demand from the instant noodles industry. Besides, 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 16.25% or 13,306 MT to 95,209 MT.

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

Malaysian Palm Products Export to Asia Pacific Region (By Products) 
PRODUCTJan-Sep 2019Jan-Sep 2018Diff (Vol)Diff (%)
RBD PL1,188,9611,170,59318,3681.57
RBD PO347,892317,79330,0999.47
RBD PS307,803176,401131,40274.49
CO / DPL79,88891,792(11,904)(12.97)
Grand Total2,382,5912,139,779 242,812 11.35

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 – Sep 2019, import of CPO International Sustainability and Carbon Certification (ISCC) recorded the strongest growth with 41,995 MT or 101.17% to 83,506 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 – Sep 2019

Malaysian Palm Products Export to the Philippines (By Products)
PRODUCTJan-Sep 2019Jan-Sep 2018Diff (Vol)Diff (%)
RBD PL441,508439,4892,0180.46
RBD PO17,03827,587(10,549)(38.24)
CO / DPL11,70310,9157887.22
RBD PS7,5106,4721,03816.04

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

Malaysian Palm Products Export to the Vietnam (By Products)
PRODUCTJan-Sep 2019Jan-Sep 2018Diff (Vol)Diff (%)
RBD PL304,678285,74818,9306.62
RBD PO91,24840,96850,280122.73
RBD PS19,83724,036(4,199)(17.47)
CO / DPL721285437153.49

Source: MPOB, Oil World & USDA

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