Malaysian Palm Oil Exports Performance to China
(Jan- Oct 2019)
A Review on MPO Export Performance
For the period of Jan – Oct 2019, Malaysia’s palm oil exports to China increased by 476,411 MT or by 33.6% to 1,897,151 MT. The main reason for the increased exports was the lower crushing of soybeans in the first half of 2019 due to lower meal demand as a result of the African swine fever (ASF). The effect of ASF was more severe and/or widespread than expected and reduced China’s need for soybeans which drove price of local soybean oil up. As a result, demand for other oils, particularly palm oil increased and this can be seen in the overall import of palm oil during this period which rose by more than 1 million MT compared to the same period of 2018.
Table 1 : Malaysian palm oil export to China/HK
|Jan – Oct 2019||Jan – Oct 2018||Difference (MT)||Difference (%)|
Source : MPOB
Another reason for the rise in China’s palm oil import can be partially attributed to the effect 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% which was further further raised to 30% on 1st September, 2019. On September, 25, 2018, China further imposed an additional 10% tariff on soyabean oil and meal imported from US. From June 1, 2019, 25% tariff was imposed for the import of the 2 products. From 1 Sept 2019, the additional tax imposed on soybean oil was raise again to 30%.
|PO – Malaysia||1,545,600||1,232,300||313,300||25.4||1,863,240|
|PO – Indonesia1||3,704,000||2,566,200||1,137,800||44.3||3,616,800|
As for palm products, RBD Palm Olein, RBD Palm Stearin and Crude Palm stearin are the major types of palm oil exported accounting for 93.6% of the total exports. This share is 3.6% lower than the 97.2% in the corresponding period last year. There was a 23.3% decrease in CPS import by 53,560 MT to 175,623 MT. Meanwhiile, RBD PS imports rose by 42.3% or 105,444 MT to 229,183 MT.
|Table 2: Malaysian Palm Products Export to China / HK |
|Product||Jan- Sep 2019||Jan-Sep 2018||Diff (MT)||Diff (%)|
On a month to month basis, Malaysia’s palm oil exports to China increase by 35.5% or 109,914 MT from 309,548 MT in August, 2019 to 419,462 MT in September 2019. September 2019 exports of 419,462 MT is 309,195 MT or 280.4% higher than the preceding year’s exports of 110,267 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. Already, China’s palm oil import recorded substantial increase for Jan.-July 2019 period. During this period, palm oil imports was at 3,914,600 MT, 37.2% or 1,060,000 MT higher than the import for the same period of last year of 2,853,800 MT.
Source : MPOB
For more info please contact Mr Lim Teck Chaii
Email : email@example.com