China (Jan – Nov) 2020

Malaysian Palm Oil Exports Performance to China
(Jan – Nov 2020)
A Review on MPO Export Performance

For the period from January-November 2020, Malaysia’s palm oil exports to China increased by 355,425 MT or by 15.9% to 2,593,253 MT. This can be attributed to the decline in Indonesia’s palm oil exports which was lower than last year due to higher domestic consumption particularly for biodiesel use. As a result, Malaysia is expected to increase its palm oil market share in the country compared to the preceding year.

From the latest available figure for Jan.-Oct. period obtained from the Chinese General Administration of Customs, Malaysia’s palm oil share rose from 29.3% to 45.4% compared to the same period last year. Meanwhile, Indonesia’s palm oil market share dropped from 70.7% to 54.6% for the same period. During this period, Indonesia experience higher domestic usage of palm oil in its biodiesel sector due to the implementation of Indonesia’s B30 mandate from B20 on 1 January 2000.  Indonesia’s government projected that the implementation of B30 mandate from B20 on 1st January 2020 will absorb an additional 2.4 million MT of palm oil into the domestic biodiesel market in 2020. (Source : theSundailymail, 23rd December 2019). The anticipated drop in Indonesia’s CPO production is expected to reduce further the availability of Indonesia’s supply to export to the world including China. For 2020, Oil World forecasts that the Indonesia’s palm oil production will drop by 1.2 million MT to 43 million MT. 

Table 1 : Malaysian palm oil export to China/HK (MT)
 Jan-Nov 2020Jan-Nov 2019Difference (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 94.8% of the total exports. This share is 0.7% higher than the 94.1% in the corresponding period last year. There was a 6.4% increase in CPS import by 14,566 MT to 242,405 MT. Meanwhile, RBD PS imports increase by 38.8% or 154,123 MT to 551,181 MT.

Table 2: Malaysian Palm Products Export to China / HK
(By Products)
ProductJan – November 2020Jan – November       2019Diff (MT)Diff (%)
RBD PL1,667,2001,480,826186,37412.6
RBD PS551,181397,058154,12338.8
Source: MPOB

On a month to month basis, Malaysia’s palm oil exports to China increase by 56.3% or 108,490 MT from 192,800 MT in October 2020 to 301,290 MT in November 2020.  November 2020 exports of 301,290 MT is 39,245 MT or 11.5% lower than the preceding year’s exports of 340,535 MT. With rising Indonesia’s CPO production, Malaysia’s palm oil exports to China in the coming months are not expected to improve compared to the same period last year. Indonesia’s rising CPO production is anticipated to improve in the 4th quarter of 2020 as the trees recovered after it was affected by drought from July to September in 2019.  During this period, the country registered an average monthly rainfall of 57.3 mm which is 35.3% lower than the average monthly rainfall experienced by the country in the same period in 2018 of 88.7 mm.

Source : MPOB


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