China (Jan – Nov) 2021

Malaysian Palm Oil Exports Performance to China
(January-November 2021)
A Review on MPO Export Performance

For the period from January-November 2021, Malaysia’s palm oil exports to China (including HK) declined by 855,282 MT or by 33% to 1,737,973 MT. This were due to increase of market share by Indonesia in November (~66%). According to Oil world, import of palm oil month-over-month (MoM) from Indonesia into China hiked about 31% in Nov while from Malaysia dropped 17%. The lower palm oil import from Malaysia is mainly due to the more competitively priced refined palm oil from Indonesia.

Table 1. Malaysia PO import to China (including HK) Jan-Nov 2021 vs 2020

 Jan-Nov  2021Jan-Nov 2020Difference (MT)Change (%)

Source MPOB

RBD Palm Olein, RBD Palm Stearin, and Crude Palm stearin, the main palm oil products exported to China market, accounting for 94% of the total exports (Chart 1.).

The Covid19 pandemic also had an impact on import of palm oil by and overall Malaysia PO imports into China registered declines and this is especially so for RBD PL which declined significant by 42%, followed by CPS (-24%) and RBD PS (-14%) as compared to the same period of 2020. Details in Table 2 below.

Table 2. Malaysia palm products export to China/HK (By Products)

ProductJan – November 2021Jan – November 2020Diff (MT)Diff (%)
RBD PL978,1851,675,757-697,572-42%
RBD PS477,064556,505-79,441-14%

Indonesia export tax and levy for January 2022 is expected to be remain the same as Dec. 2021 and with this export structure, it is expected that Indonesia will be continue to be price competitive in global export markets particularly for refined palm oils & downstream products. There is however a likelihood that Malaysia’s palm oil exports to China in the coming months may improve as China start to purchase palm oil to stock up for the upcoming festive season but could be curtailed by higher availability of soybean oil. Analysts forecast that the short term bullish palm oil prices could have an effect on China’s palm oil demand. There could be higher demand for soybean meal by the livestock industry which would mean higher soybean crushing, hence more SBO will be available to the market. (Source: UOB Palm oil market update, dated 15 Dec 2021).

On an annual basis, we anticipate China’s total palm oil import to be stronger for the coming year, as in need to replenish stocks to meet basic PO demand which is unlikely to be replaced by import of soft oil.

Chart 2. 2021 vs 2020: Total import of Malaysian PO to China on month-over-month basis

(Source MPOB)

(Source: Oil world Flash, dated 22 Dec 2021)

(Source: UOB Seminar on Palm oil market update, dated 15th Dec 2021)

(Source: Oil world & MPOB)

For more info please contact Mr Lim Teck Chaii
Email :

*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.

Stay In Touch

Stay In Touch

You can share this posts:

Leave a Reply