Malaysian Palm Oil Exports Performance to Middle East & North Africa (MENA) Region
(Jan – Jun 2019)
A Review on MPO Performance
Middle East (East of Suez)
|No.||COUNTRY||Jan – June 2019|
Jan – June
Import of Malaysian palm oil Jan – June declined by 10.6% or 99,551 MT, mainly due to the lower imports of MPO by Saudi Arabia. The reason for this is the country is now importing more palm oil from Indonesia who are offering attractive discounts as well as better credit terms for the products. This has severely impacted MPO exports to Saudi Arabia. Nevertheless, we remain optimistic that import of MPO to the country will see improvement especially after the successful organization of POTS Saudi Arabia where a few business deals were concluded.
As for Iran, imports has recovered after a lull in MPO imports at the beginning of the year as the country intensified its import in June to replenish their palm oil stocks which fell as they made very little purchasing in the first quarter of the year.
|No.||COUNTRY||Jan – June 2019||Jan – June 2018|
Imports of Malaysian palm oil by the North African market recorded a 37.74% decline, owing to the drop in imports by the three major markets namely Ethiopia, Djibouti and Egypt. Djibouti, the leading importer of Malaysian palm oil only imported 31,353MT compared to 92,935MT in 2018, while Ethiopia imports also declined by 54.92%. Djibouti which is a re-export hub for palm oil and other commodities has seen this role diminish as neighbouring countries imported direct. This has had an impact in the overall import of palm oil by Djibouti. As for Ethiopia, the tight foreign currency availability in the country has limited their purchasing power for imported products including palm oil.
However, it is interesting to note that Somalia has now emerged as the leading importer of MPO in the region with import growth of 40.08% or 14,152MT. The market was importing direct from Malaysia instead of through Ethiopia and Djibouti.
Breakdown of MPO Exports (MT) Jan – June 2019
|PRODUCT||Jan – June|
|Jan – June|
|Diff (MT)||Diff (%)|
Middle East and North Africa market are mostly consumed RBD Olein. It accounts for 67% of the total palm oil imported but imports decline marginally by 4.1%. Import of CO (Cooking Oil / Double Fract. Palm Olein) accounted for 4% of the total import and the volume was 18.5% higher.
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