Malaysian Palm Oil Exports Performance to China
(Jan – Aug 2021)
A Review on MPO Export Performance
For the period from January-August 2021, Malaysia’s palm oil exports to China decreased by 792,547 MT or by 42.9% to 1,055,886 MT from 1,848,433 MT compared to the same period last year. Malaysian palm oil exports were primarily affected by strong competition from the Indonesian suppliers as the revision 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 August, 2021, Indonesia’s export levy and export taxes for CPO were raised from USD 55/MT and zero duty in August 2020 to USD 175/MT and USD 93/MT in August 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 47.6% or 874,400 MT to 962,200 MT for January-August 2021 period. Meanwhile, Indonesia’s palm oil exports increase by 62.6% or 1,213,200 MT to 3,149,400 MT. Total palm oil imports by China during the period is 8.7% or 331,200 MT higher at 4,118,300 MT.
|Table 1: Malaysian palm oil export to China/HK (MT)|
|Jan.-Aug 2021||Jan.-Aug 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 92.61% of the total exports. This share is 2.41% lower than the record of for the same period in the previous year of 95.02%. There was a decrease in CPS import by 32.5% or 62,116 MT to 129,238 MT. The same situation occurs for China’s imports of Malaysia’s RBD PL and RBD PS which recorded a decline by 51.5% or 604,827 MT and 28.5% or 111,641 MT to 569,067 MT and 279,561 MT respectively.
|Table 2: Malaysian Palm Products Export to China / HK |
|Product||Jan – August|
|Jan – August 2020||Diff (MT)||Diff (%)|
On a month to month basis, Malaysia’s palm oil exports to China has shown a decline with August’s export recording 137,816 MT which is 17.3% lower than the preceding months exports of 166,693 MT. The volume of exports is 53.5% or 158,769 MT lower than the exports of the same period last year of 296,585 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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