Asia Pacific (Jan – Jun) 2019

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

NoCOUNTRYJan-Jun 2019Jan-Jun 2018Diff (Vol)Diff (%)
1Philippines321,806308,94912,8574.16
2Vietnam272,451222,70949,74222.33
3Japan244,580227,50017,0807.51
4South Korea201,403205,133(3,729)(1.82)
5Singapore190,132232,250(42,118)(18.13)
6Taiwan107,60196,06911,53312.00
7Indonesia94,3011,18193,1207,884.05
8Australia67,18158,7368,44514.38
9Myanmar38,55744,672(6,115)(13.69)
10New Zealand7,55810,068(2,510)(24.93)
11Brunei4,1804,273(93)(2.17)
12Papua N. Guinea3,9075,744(1,837)(31.99)
13Fiji1,4231,14627724.19
14Cambodia5801,431(851)(59.48)
15Mongolia384687(303)(44.11)
16Vanuatu87124(37)(29.65)
17Solomon Island722448205.27
18New Caledonia49321650.00
19Tonga48242498.18
20Kiribati422021106.46
21Samoa2543(18)(42.29)
22Nauru024(24)(100.00)
 Grand Total1,556,3661,420,840135,5269.54

During the period of January to Jun 2019, Malaysian palm oil export to the Asia Pacific region increased by 135,526 MT or by 9.54% compared to the same period of last year. The increase was mainly due to the higher imports by Vietnam and Indonesia.

Despite only a slight increase of 4.16%, Philippines retained its position as the main destination of Malaysian palm oil exports with 321,806 MT, an increase of 12,857 MT and also an improvement in Malaysian palm oil export to the Philippines. One of the main reason for the higher demand is the widening price spread between palm oil and coconut oil which makes it more attractive for domestic consumption of palm oil especially for food applications.

For the period of January – June 2019, Malaysian palm oil exports to Vietnam also showed an improvement with an increase by 49,742 MT or 22.33% to 272,451 MT. 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) which decimated the pig population. As of June 17, 2019, 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 import of soybean from USA dropped by 171,900 MT or 49% to 350,500 MT for the period January to May 2019.

Malaysian palm oil to South Korea only showed a slight decreased by 3,729 MT to 201,403 MT mainly due to high demand of soybean oil from USA. USDA reported that soybean oil price fall 10 euros per tonnes which makes stronger demand for U.S. soybean oil from South Korea, Mexico and Canada.

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

Malaysian Palm Products Export to Asia Pacific Region  (By Products)
PRODUCTJan-Jun 2019Jan-Jun 2018Diff (Vol)Diff (%)
RBD PL780,425749,96830,4574.06
RBD PO218,548204,03214,5167.11
RBD PS195,967125,97169,99655.57
PFAD103,89996,6717,2287.48
CPO INTERNATIONAL SUSTAINABILITY AND CARBON CERTIFICATION66,49733,50732,99198.46
CO / DPL53,65659,464(5,808)(9.77)
Others137,374151,227(13,852)(9.16)
Grand Total1,556,3661,420,840135,5269.54

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 – Jun 2019, import of CPO International Sustainability and Carbon Certification (ISCC) recorded the strongest growth with 32,991 MT or 98.46% to 66,497 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 – Jun 2019

Malaysian Palm Products Export to the Philippines  (By Products)
PRODUCTJan-Jun 2019Jan-Jun 2018Diff (vol)Diff (%)
RBD PL287,681280,732           6,949          2.48
RBD PO13,60614,621         (1,015)        (6.94)
CO / DPL8,2226,294           1,928        30.63
RBD PS6,4203,890           2,530        65.04
Others5,8763,411           2,465        72.25
Total321,806308,949         12,857           4.16

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

Malaysian Palm Products Export to the Vietnam  (By Products)
PRODUCTJan-Jun 2019Jan-Jun 2018Diff (Vol)Diff (%)
RBD PL205,079179,927         25,152        13.98
RBD PO50,77222,412         28,360     126.54
RBD PS15,62718,577         (2,949)     (15.88)
CO / DPL447208               239     114.86
Others5251,586         (1,061)     (66.87)
Total272,451222,709         49,741         22.33

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

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