Asia Pacific (Jan – Aug) 2019

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

NoCOUNTRYJan-Aug 2019Jan-Aug 2018Diff (MT)Diff (%)
1Philippines415,928420,896(4,968)(1.18)
2Vietnam361,949316,59445,35514.33
3Japan324,794304,11820,6776.80
4South Korea276,138256,79319,3457.53
5Singapore243,377283,733(40,356)(14.22)
6Indonesia151,3611,286150,07511,666.35
7Taiwan146,746144,2372,5091.74
8Australia97,50979,46118,04822.71
9Myanmar50,20455,245(5,042)(9.13)
10New Zealand11,54111,592(51)(0.44)
11Papua N. Guinea5,9208,004(2,084)(26.03)
12Brunei5,8375,6112274.04
13Fiji2,3201,83448626.51
14Cambodia1,1391,573(434)(27.60)
15Mongolia8211,167(346)(29.66)
16Vanuatu105148(43)(29.02)
17Solomon Island72169(97)(57.55)
18Kiribati622042206.46
19New Caledonia49321650.00
20Tonga48242498.18
21Samoa4467(24)(35.12)
22Laos42042N/A
23Micronesia Federation18018N/A
24Tuvalu202N/A
25Nauru024(24)(100.00)
 Total2,096,0261,892,630203,39610.75

During the period of January to August 2019, Malaysian palm oil export to the Asia Pacific region increased by 203,396 MT or by 10.75% 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 with 418,928 MT, despite a slight decrease of 4,968 MT or by 1.18%. It is reported that high supply of copra in the Philippines resulted in high production and export 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 decimate copra production in the remainder of 2019 as well as 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 45,355 MT or 14.33%. 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. According to the Oil World data, Vietnam imports of soybean from USA dropped by 391,800 MT or 62.1% to 238,900 MT for the period January to July 2019.

For the period under review, Malaysian palm oil export to South Korea and Japan also showed an increase by 19,345 MT or 7.5% and 20,677 MT or 6.8% 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 16.3% or 11,816 MT to 84,532 MT.

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

Malaysian Palm Products Export to Asia Pacific Region  (By Products)
PRODUCTJan-Aug 2019Jan-Aug 2018Diff (Vol)Diff (%)
RBD PL1,040,2321,032,6117,6210.74
RBD PO295,120275,26219,8577.21
RBD PS281,606158,309123,29777.88
PFAD154,477123,83330,64424.75
CPO INTERNATIONAL SUSTAINABILITY
AND CARBON CERTIFICATION
76,50633,50742,999128.33
CO / DPL72,65180,979(8,328)(10.28)
Others175,435188,130(12,695)(6.75)
Total2,096,0261,892,630203,39610.75

The main imported Malaysian palm products is RBD palm olein with the share of 54% of total Malaysian palm oil import in the Asia Pacific region. For the period of Jan – Aug 2019, import of CPO International Sustainability and Carbon Certification (ISCC) recorded the strongest growth with 42,999 MT or 128.33% to 76,506 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 – Aug 2019

Malaysian Palm Products Export to the Philippines  (By Products)
PRODUCTJan-Aug 2019Jan-Aug 2018Diff (Vol)Diff (%)
RBD PL375,867378,466(2,600)(0.69)
RBDPO15,99722,011(6,013)(27.32)
CO/DPL11,0959,5971,49715.60
RBDPS6,4206,2721482.37
Others6,5484,5491,99943.94
Total415,928420,896(4,968)(1.18)

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

Malaysian Palm Products Export to the Vietnam  (By Products)
PRODUCTJan-Aug 2019Jan-Aug 2018Diff (Vol)Diff (%)
RBD PL269,520257,46612,0544.68
RBD PO72,09735,11336,984105.33
RBD PS18,93121,637(2,706)(12.51)
CO / DPL633263 370140.35
Others7682,114(1,347)(63.68)
Total361,949316,59445,355   14.33

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

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