China (Jan – May) 2022

Malaysian Palm Oil Exports Performance to China
(January-May 2022)
A Review on MPO Export Performance
 

From January-May 2022, Malaysian palm oil exports to China decreased by 64,661 MT or by 12.1% from 535,437 MT to 470,776 MT compared to the same period last year. The decline is attributed to high palm oil prices. Among the main factor which contributed towards reduced Malaysia exports is the auction undertaken of soybean and rapeseed oil undertaken by State Reserve Board. On 11 March 2022, 112,928 MT of rapeseed oil was auctioned while 300,000 MT of soybean was auctioned by the State Reserve Board on 14th March, 2022. Based on information gathered, China imported 975,900 MT of palm oil from January – May 2022. The amount imported is  1,504,100 MT or 60.6% lower than last year’s import of 2,480,000 MT.

Table 1: Malaysian palm oil export to China/HK (MT)
 Jan.-May 2022Jan.- May 2021Difference (MT)Difference (%)
China/HK470,776535,437(64,661)(12.1)
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 93.91% of the total exports. This share is 2.45% higher than that recorded for the same period in the previous year of 91.46%.  There was a decrease in CPS export by 71.3% or 47,276 MT to 10,942 MT. The decrease is partly offset by the increase in RBD palm stearin exports by 62.8% or 81,138 MT to 210,383 MT.  Meanwhile, exports of RBD palm olein decreased by 27.7% or 81,491 MT to 212,674 MT.

Table 2: Malaysian Palm Products Export to China / HK
(By Products)
ProductJan – May
2022
Jan – May
2021
Diff (MT)Diff (%)
RBD PL212,674294,165(81,491)(27.7)
RBD PS210,383129,24581,13862.8
CPS19,04266,318(47,276)(71.3)
PFAD4,8425,612(770)(13.7)
OTHERS23,83340,095(16,262)(40.6)
TOTAL470,776535,437(64,661)(12.1)
Source: MPOB

On a month to month basis, Malaysia’s palm oil exports to China has increased with May exports recording  85,283  MT which is 10.6% higher than April 2022 exports of  77,073 MT. Compared to the exports recorded in May 2021, the volume is 41.1% or 59,570 MT lower than the exports recorded in May last year which was at 144,853  MT.

After 23rd May 2022, Malaysia’s palm oil export is anticipated to face stiffer competition from Indonesia. The Indonesian government had announced that it will replace the ban on the export of palm based cooking oil from 28 April 28, 2022 onwards. With this new changes, the country’s palm oil exporters is required to allocate 10 million MT of cooking oil for domestic market.  To export, companies must obtain export permit and would only be granted if they have allocated enough cooking oil for the local market. The new regulation make available more Indonesian palm oil for export.

Increased availability of Indonesian palm oil globally has lead palm oil prices to decline and as a result RBD palm olein prices to be lower than soybean oil prices (Refer to chart 2). This development is favourable for higher exports of palm oil to China the coming months and benefits Malaysian palm oil exporters.

(Source MPOB)

Source : Dalian Exchange

For more info please contact Mr Lim Teck Chaii
Email : lim@mpoc.org.my

*Disclaimer: This document has been prepared based on information from sources believed to be reliable but we do not make any representations as to its accuracy. This document is for information only and opinion expressed may be subject to change without notice and we will not accept any responsibility and shall not be held responsible for any loss or damage arising from or in respect of any use or misuse or reliance on the contents. We reserve our right to delete or edit any information on this site at any time at our absolute discretion without giving any prior notice.

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