Malaysian Palm Oil Exports Performance to China
(Jan – May 2020)
A Review on MPO Export Performance
For the period of January-May 2020, Malaysia’s palm oil exports to China increased slightly by 9,186 MT or by 1.02% to 910,151 MT. The main reason for the marginal increase in exports was the weak palm oil demand cause by the outbreak of coronavirus. China’s measures to combat COVID-19 outbreak took a heavy toll on the food sector resulting in the decline in edible oil demand including palm oil. The cold winter season experienced in China in the first quarter of 2020 is the other factor leading to lower palm oil imports as palm oil solidifies during winter making transportation of palm oil in cold season difficult.
|Table 1 : Malaysian palm oil export to China/HK (MT)|
|Jan.-May 2020||Jan.-May 2019||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 96.7% of the total exports. This share is 4.2% higher than the 92.1% in the corresponding period last year. There was a 10.8% increase in CPS import by 10,334 MT to 105,634 MT. Meanwhile, RBD PS imports increase by 8.3% or 16,611 MT to 204,561 MT.
|Table 2: Malaysian Palm Products Export to China / HK |
|Product||Jan – May 2020||Jan – May 2019||Diff (MT)||Diff (%)|
On a month to month basis, Malaysia’s palm oil exports to China increase by 13.5% or 26,998 MT from 200,038 MT in April, 2020 to 227,036 MT in May 2020. May 2020 exports of 227,036 MT is 99,493 MT or 78.0% higher than the preceding year’s exports of 127,543 MT. With China’s recovery from the COVID-19 pandemic, Malaysia’s palm oil exports to China in the coming months is expected to improve. We are also expecting higher month to month exports as the weather in China gets warmer the coming few months. The low palm oil inventory in May 2020 is another factor that is expected to help boost higher palm oil imports to the country. In May 2020, China palm oil inventory drop by 36.1% or 297,900 MT to 527,100 MT compared to the same period last year. On an annual basis, we anticipate China’s palm oil import will not be strong compared to last year due to the recovery of soybean crushing activity. This is fuel by rising hog demand as ASF outbreak sub-side. The development will encourage will encourage more soybean crushing and higher production of soyabean oil.
Source : MPOB
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