China (Jan – Jun) 2019

Malaysian Palm Oil Exports Performance to China
(Jan- Jun 2019)
A Review on MPO Export Performance

Table 1 : Malaysian palm oil export to China/HK
 Jan – June 2019Jan – June 2018Difference (MT)Difference (%)
Source : MPOB



Table 2: Malaysian Palm Products Export to China / HK

(By Products)

ProductJan- June 2019Jan-June 2018Diff (MT)Diff (%)
RBD PL615,649598,95916,6902.8
RBD PS212,472136,58675,88655.6
Source: MPOB

For the period of Jan – June 2019, Malaysia’s palm oil exports to China increased by 141,395 MT or by 16.3% to 1,008,868 MT. The main reason for the increased exports was the suspension of Malaysian export duty which made the price more attractive for importers in China. Another reason for the rise in China’s palm oil import can be partially attributed to the benefit enjoyed by palm oil from the US-China trade war. On July 6, 2018, China imposed additional 25% tariff on US soybean import on top of the existing 3%. On September, 25, 2018, China further impose a 10% tariff on soybean oil and meal imported from US.  From June 1, 2019, 25% tariff is impose for the import of the 2 products.

As for palm products, RBD Palm Olein, RBD Palm Stearin and Crude Palm stearin are the major types of palm oil exported accounting for 92.6% of the total exports. This share is 4.9% lower than the 97.5% in the corresponding period last year. There was an increase in RBD PL and RBD PS imports by 16,690 MT and 75,886 MT or 2.8% and 55.6% to 615,649 MT and 212,472 MT respectively. CPS imports by 106,309 MT helps to increase China’s RBD palm stearin import for Jan-June 2019.

On a month to month basis, Malaysia’s palm oil exports to China decrease by 15.3% or 19,532 MT from 127,488 MT in May, 2019 to 107,956 MT in June 2019.  June 2019 exports of 107,956 MT is 47,935 MT or 30.7% lower than the preceding year’s exports of 155,891 MT. With USA-China trade war escalating, it is expected that this factor will continue to support growth of Malaysian palm oil exports to China.

Source : MPOB


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