Malaysian Palm Oil Exports Performance to Asia Pacific Region
(Jan – July 2021)
A Review on MPO Performance
|No||Country||Jan – Jul 2021||Jan – Jul 2020||Diff (MT)||Diff (%)|
|9||Papua N Guinea||11,272||4,510||6,762||149.93|
From January to July 2021, Malaysian palm oil export to the Asia Pacific region decreased by 381,509 MT or by 22.3% compared to the last year. Most of the countries recorded a drop in Malaysian palm oil imports for the period under review. Revision in Indonesian export taxes and levies has increased Indonesia’s price competitiveness in refined palm oil products export. This will likely result in a scenario where there will be a higher demand for PPO from Indonesia and major CPO-consuming countries will look to Malaysia for supplies. Asia Pacific countries are mostly the PPO importers which resulted in the increase of Indonesian palm oil intake in most Asia Pacific countries.
Philippines is the main destination of Malaysian palm oil exports in the ASEAN region which recorded a drop of 57,495 MT or 14.3% to 344,505 MT compared to the same period last year. The reason for the drop in Malaysian palm oil import due to increase in the import of Indonesian palm oil in the Philippines. Based on Oil World data, for the period January to June 2021, Indonesian export to the Philippines increased by 56.5% to 296,300 MT compared to the same period in 2020.
Singapore was the three import destination within the ASEAN region which recorded a decline of 120,504 MT or 54.6% to 86,772 MT from January to July 2021 as compared to the same period of last year. In early 2020, Singapore imported a large quantity of CPO for their biodiesel blending as taking advantage of Malaysia’s duty exemption on CPO. From January to July 2020, Singapore imported 56,713 MT of CPO, however, this year, there was no CPO imported due to the high palm oil price.
Malaysian palm oil exports to Vietnam have registered a decline of 108,169 MT or 36.9% to 184,896 MT compared to the same period in 2020, mainly due to an increase in palm oil import from Indonesia and high import of soybeans from the USA. From January to June 2021, Indonesian palm oil increased by 95,000 MT or 47% to 297,000 MT compared to the same period last year Besides the increase in the Indonesian palm oil import in Vietnam, the country experienced high availability of soybean oil in the market due to an increase in soybean domestic crushing for catering the domestic feed requirements. The recovery from the 2019 ASF outbreak increases the import of soybean into Vietnam which is away affected palm oil import. Also, due to the COVID-19 restriction, there are widespread closures of restaurants, hotels and canteens that have reduced palm oil consumption in the country. As a result, consumers prefer to stay at home and do home cooking. This trend shift has resulted in a growth in soybean oil and rice bran oil consumption in Vietnam.
South Korea recorded a drop in Malaysian palm oil imports of 56,989 MT or 22.2%. As reported by USDA, the low palm oil imports in South Korea were due to lower demand from the biodiesel production sector in the country. The biodiesel sector has been the main driver of rising palm oil imports in the country since 2007/08 and over the years, palm oil used in biodiesel has increased due to palm oil’s price competitiveness over soybean oil. It is estimated that the palm oil import will slightly increase this year driven by the Korean government’s plans to increase the biodiesel mandate from B3 to B3.5 in July 2021.
The decline in imports of Malaysian palm oil by Japan was mainly due to lower imports of RBD palm stearin import which Japan mainly uses as feedstock for FIT-supported powerplants. The utilization of RBD palm stearin is dependent on global palm stearin’s prices and this is reflected in lower consumption due to the high price of RBD palm stearin especially during the first half of 2021. As a result, the import of RBD palm stearin from Malaysia dropped by 29,198 MT or 81.9% to only 6,432 MT compared to the same period in 2020. Furthermore, Japan has not been spared from the Covid-19 pandemic and the country extended the state of emergency until 12 September 2021 due to the third wave of COVID-19 infections in the country. The Japanese government program to support domestic tourism has also been suspended, which negatively impacts HORECA sector sales.
Breakdown of MPO Exports to the Asia Pacific Region (MT) January to July 2021
|Malaysian Palm Products Export to Asia Pacific Region (By-Products)|
|PRODUCT||Jan-Jul 2021||Jan-Jul 2020||Diff (MT)||Diff (%)|
|RBD Palm Olein*||780,944||904,461||(123,517)||(13.66)|
|RBD Palm Oil*||244,354||332,846||(88,492)||(26.59)|
|RBD Palm Stearin*||100,422||116,598||(16,176)||(13.87)|
|Cooking Oil / DPL||73,007||76,800||(3,793)||(4.94)|
|*Including ISCC, RSPO Mass Balance and RSPO from Segregated Categories|
*Including ISCC, RSPO Mass Balance and RSPO from Segregated Categories
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