Malaysian Palm Oil Exports Performance to China
(Jan – Feb 2020)
A Review on MPO Export Performance
For the period of January-February 2020, Malaysia’s palm oil exports to China decreased by 66,043 MT or by 16.5% to 334,230 MT. The main reason for the decrease in exports to China 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 January-February is the other factor leading to lower palm oil imports. This is because palm oil solidify during winter making transportation of palm oil in cold season difficult. As a result, demand for edible oils, particularly palm oil decreased in January -February 2020.
|Table 1 : Malaysian palm oil export to China/HK (MT)|
|Jan-Feb 2020||Jan-Feb 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 96.0% of the total exports. This share is 3.0% higher than the 93.9% in the corresponding period last year. There was a 20.8% increase in CPS import by 6,376 MT to 37,076 MT. Meanwhile, RBD PS imports decrease by 2.3% or 1,711 MT to 71,872 MT.
|Table 2: Malaysian Palm Products Export to China / HK (By Products)|
|Product||Jan.-Feb 2020||Jan.-Feb 2019||Diff (MT)||Diff (%)|
On a month to month basis, Malaysia’s palm oil exports to China decrease by 11.2% or 19,982 MT from 177,077 MT in January, 2020 to 157,095 MT in February 2020. February 2020 exports of 157,095 MT is 76,481 MT or 94.9% higher than the preceding year’s exports of 80,614 MT. We are expecting higher palm oil import as the weather gets warmer in the coming months. The effect of ASF outbreak is another contributing factor that will support higher palm oil demand. It reduced China’s need for soybeans which drove price of local soybean oil up and help to increase demand for other oils, particularly palm oil. However, with the easing of the US-China tension, we do not expect the month to month import figure to be as strong as the preceding period last year as greater availability of cheaper soybean from US will encourage more soybean crushing and higher production of soyabean oil.
Source : MPOB
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