PALMOILMAGAZINE, JAKARTA – The Covid-19 pandemic compelled China to implement stringent regulations, at times even restricting market access. Consequently, it’s unsurprising that vegetable oil trade within the country experienced a decline from 2019 to 2022.
According to Oil World, imports of fats and oils decreased by 5.5%, totaling 39.49 million tons. This reduction in demand for more expensive vegetable oils was influenced not only by the economic disruptions caused by the pandemic but also by geopolitical issues affecting major fat and oil exporters such as Ukraine, Russia, and Indonesia.
Notably, palm oil imports to China saw a significant drop in 2022, marking the most substantial decline since China eliminated quantitative limits (the remainder of the tariff level quota) in 2006. The last notable reduction in palm oil imports occurred in 2016 when they plummeted by 24.2%, equivalent to 1.43 million tons.
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According to Desmond Ng of Malaysian Palm Oil Council (MPOC), the decreasing imports happened for the decreasing soyoil production that reached 14,5% or increased 1,83 million tons, decreasing CPO production in the globe that reached 3,34 million tons or about 5,3%, and the high stock of palm oil.
Desmond Ng predicted, palm oil imports in China this year would decrease 1,43 million tons from last year – import volume. This happened for the sunflower oil and rapeseed supply interruption from Ukraine and Russia because of military conflicts. (T2)
