Middle East (Jan -Oct) 2019

Malaysian Palm Oil Exports Performance to Middle East & North Africa (MENA) Region
(Jan – Oct 2019)
A Review on MPO Performance

Middle East (East of Suez)

No.COUNTRYJan – Oct 2019Jan – Oct 2018Change (MT)Change (%)
1Turkey603,316560,52142,7957.09%
2Iran462,782468,075-5,293-1.14%
3Saudi Arabia118,629318,032-199,403-168.09%
4UAE65,03945,11419,92530.64%
5Yemen60,63087,053-26,423-43.58%
6Qatar23,13719,1423,99517.27%
7Oman22,56978,368-55,798-247.23%
8Kuwait22,36623,737-1,371-6.13%
9Syria13,17134,760-21,588-163.90%
10Jordan11,45114,718-3,267-28.53%
11Bahrain10,54911,220-672-6.37%
12Iraq10,31613,617-3,301-32.00%
13Lebanon7,2028,114-912-12.66%
14Palestine28315213146.26%
15Cyprus42
  1,431,4821,682,624-251,142-14.93%

During the review period of Jan – Oct 2019, imports of Malaysian palm oil to this region declined by 14.93% or 251,142 MT compared to the same period of 2018. The decline can be attributed by the decline in import by Saudi Arabia which declined by almost 200,000MT or 168%.  This significant decline was mainly due to competition from Indonesia where industry sources claimed that Indonesian palm oil is at certain times offered by at least US$10 – US$20 lower than Malaysian palm oil.  As of Jan – June 2019, Saudi Arabia imported close to 200,000 MT of palm oil from Indonesia against just 34,000 MT in 2018.

Turkey continues to be the leading importer of Malaysian palm oil although the growth rate is marginally at just 7.09%.  Malaysian palm oil still enjoys the advantage of Malaysia-Turkey FTA signed in 2015. Indonesian however, has expressed their interest to sign a similar arrangement with Turkey and is currently undergoing series of FTA negotiations. Iran has come back strongly into the market to replenish their depleting stock and imports was at almost the same level of the previous year.  UAE imports went up by 30.64% or almost 20,000 MT.

North Africa (West of Suez)

No.COUNTRYJan – Oct 2019Jan – Oct 2018Diff (Vol)Diff (%)
1.Somalia80,28664,67315,61324.14%
2.Ethiopia59,444133,015-73,571-55.31%
3.Djibouti44,428173,550-129,122-74.40%
4.Egypt39,25765,927-26,670-40.45%
5.Algeria25,50724,8596482.61%
6.Sudan6,4453,7892,65670.09%
7.Eritrea2,5263,981-1,455-36.56%
8.Morocco2,05321,810-19,757-90.59%
9.Libya543151391258.18%
10Tunisia33071259362.74%
  260,819491,827-231,008-46.97%

Imports of Malaysian palm oil by the North African market recorded a 46.97% decline, owing to the drop in imports by most of its major markets such as Djibouti, Ethiopia and Egypt.  These three markets which accounted for more than 75% of the total North Africa imports of Malaysian palm oil, only managed to secure 184,158 MT of the total Malaysian palm oil imports volume into the region against 371,238MT imported in 2018.

Djibouti, the leading importer of Malaysian palm oil only imported 44,428 MT against 173,550 MT in the previous year, a drop of 74.4%.  Djibouti, which serves as the gateway to Ethiopian and other Northeast Africa market has been affected by the slow demand from Ethiopian market.  Ethiopian market, which is currently facing shortage in its foreign currency has reduced its imports of Malaysian palm oil tremendously.  Imports during Jan – October dropped by 55.31% or 73,571 MT.

Another major market, Egypt imported only 39,257 MT up until October, which is a decline of 40.45%. The main reason for the decline in imports by Egypt is not only due to the attractive price offered by Indonesian but also due to the higher imports of soybean and corn oil which adversely affected Malaysian palm oil import to the country.

Somalia, on the other hand rose as the leading importers of Malaysian palm oil with imports increasing by 24.14% or 15,613 MT.   Other markets with positive uptake of Malaysian palm oil are Algeria, Sudan, Libya and Tunisia.  However, these market only accounted for 12.59% of the total Malaysian palm oil exported into the North African market.

Breakdown of MPO Exports (MT) Jan – Oct 2019

PRODUCTJan – Oct
2019
Jan – Oct
2018
Diff (MT)Diff (%)
CPO8,49916,594(8,095)-48.78%
CPL77,482319,671(242,189)-75.76%
RBD PL1,137,4731,327,234(189,761)-14.30%
RBD PO214,432278,244(63,812)-22.93%
RBD PS160,992158,3682,6241.66%
Coking Oil/DPL61,81158,8952,9164.95%
Others31,61215,44516,168104.68%
 1,692,3012,174,451(482,149)-22.17%

Middle East and North Africa market are mostly consumed RBD Olein.  It accounts for 67% of the total palm oil imported but imports declined by 14.30%.  Import of CO (Cooking Oil) accounted for 58,895 MT or 3.74% of the total imports and the volume was 4.95% higher.

For more info please contact Mrs Fatimah
Email : fatimah@mpoc.org.my

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