Malaysian Palm Oil Exports Performance to China
(Jan – Feb 2021)
A Review on MPO Export Performance
For the period from January-February 2021, Malaysia’s palm oil exports to China decreased by 131,009 MT or by 39.5% to 203,222 MT. During the period, Malaysia’s palm oil exports is primarily affected by a fall Malaysia’s CPO production. Malaysia’s CPO production for the first 2 months of 2021 fell by 0.2 million MT to 2.2 million compared to the same period last year. Production is affected by La Lina which brings heavy rainfall to many parts of the country. Revision of Indonesia’s export tax and levy is another major factor contributing to a drop in Indonesia’s exports. During the period, Indonesia’s export levy and export taxes were raised from USD 50/MT and USD 18/MT in February 2020 to USD 255/MT and USD 93/MT in February 2021. The rise in export duty and taxes increases Indonesia’s price competitiveness in refined palm oil products export compared to Malaysia.
|Table 1 : Malaysian palm oil export to China/HK (MT)|
|Jan-Feb 2021||Jan-Feb 2020||Difference (MT)||Difference (%)|
|Source : MPOB|
As for palm products, RBD Palm Olein, RBD Palm Stearin, and Crude Palm stearin are the major types of palm oil exported accounting for 91.0% of the total exports. This share is 5.0% lower than the 94.3% in the corresponding period last year. There was a 23.2% decrease in CPS imports by 6,978 MT to 30,098 MT. Meanwhile, RBD PS imports decrease by 112.9% or 38,108 MT to 33,764 MT.
|Table 2: Malaysian Palm Products Export to China / HK |
|Product||Jan – February 2021||Jan – February 2020||Diff (MT)||Diff (%)|
On a month to month basis, Malaysia’s palm oil exports to China decrease by 25.6% or 29,829 MT from 116,525 MT in January 2021 to 86,695 MT in February 2021. February 2021 exports of 86,695 MT is 70,400 MT or 44.8% lower than the preceding year’s exports of 157,095 MT. For the coming months, palm oil is anticipated to be negatively affected by rising soybean crushing driven by the continued recovery of the country’s hog industry from the African Swine Fever. As such, it is anticipated that the coming months imports will be lower than the same period in the preceding year.
Source : MPOB
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