Malaysian Palm Oil Exports Performance to China
(Jan – July 2021)
A Review on MPO Export Performance
For the period from January-July 2021, Malaysia’s palm oil exports to China decreased by 633,776 MT or by 40.8% to 918,070 MT from 1,551,846 MT compared to the same period last year. During the period, Malaysia’s palm oil exports is primarily affected by strong competition from the Indonesian suppliers. The increase in Indonesia’s export tax and levy raises the country’s refined palm oil products price competitiveness, resulting in the decline in Malaysia’s export during the period. For the month of July, 2021, Indonesia’s export levy and export taxes for CPO were raised from USD 55/MT and zero duty in July 2020 to USD 175/MT and USD 116/MT in July 2021.
Reflecting the stronger competition from the Indonesian suppliers arising from the hike in export tax and levy, latest figures from the China’s General Administration of Custom shows that Malaysia’s palm oil exports to China drop by 50.7% or 663,800 MT to 644,800 MT for January- June 2021 period. Meanwhile, Indonesia’s palm oil exports increase by 80.3% or 1,029,100 MT to 1,281,500 MT. Total palm oil imports by China during the period is 13.6% or 358,800 MT higher at 2,961,900 MT.
|Table 1: Malaysian palm oil export to China/HK (MT)|
|Jan.-July 2021||Jan.-July 2020||Difference (MT)||Difference (%)|
As for palm products, RBD Palm Olein, RBD Palm Stearin, and Crude Palm stearin are the major types of palm oil exported accounting for 91.69% of the total exports. This share is 4.17% lower than the record of for the same period in the previous year of 95.86%. There was a decrease in CPS import by 28.9% or 47,422 MT to 116,719 MT. The same situation occurs for China’s imports of Malaysia’s RBD PL and RBD PS which recorded a decline by 48.1% or 470,852 MT and 37.0% or 127,650 MT to 507,637 MT and 217,445 MT respectively.
|Table 2: Malaysian Palm Products Export to China / HK |
|Product||Jan – July|
|Jan – July 2020||Diff (MT)||Diff (%)|
On a month to month basis, Malaysia’s palm oil exports to China has shown a decline with June’s export recording 166,693 MT which is 22.8% lower than the preceding months exports of 215,887 MT. The volume of exports is 42.4% or 122,696 MT lower than the exports of the same period last year of 289,389 MT. For the coming months, Malaysia’s palm oil export is anticipated to be negatively affected by rising Indonesia’s competition. 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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