PALMOILMAGAZINE, KUALA LUMPUR – As per China’s Customs data, palm oil imports in the country surged by 77.9% year-on-year from January to July 2023. This sharp increase was primarily driven by the growing demand for palm cooking oil, following the easing of COVID-19 restrictions.
During the initial seven months of 2023, China’s palm oil imports reached 2.67 million tons, a substantial rise compared to the 1.50 million tons imported during the corresponding period in the previous year.
As Palmoilmagazine.com quoted from PalmPulse, fat and oil demands in the country got decreased last year. It was from the first decreasing demands since China joint World Trade Organization (WTO). But after lockdown loosened after controlling Covid-19 pandemic by the early of this year, it is predicted that the country would escalate its fat and oil demands.
Palm oil imports would be increasing as same as the increasing fat and oil production locally. Soyoil demands also decreased in the past few years.
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What the Government of China to reduce soyoil import dependence has limited soyoil production. As the result, RBD palm oil got price discount sustainably compared to soyoil in the country. The price discount escalated in phase from RMB 390/ton in the midst of May to be RMB 1.250/ton by the late of August.
By considering the factors, it is projected that palm oil imports for the rest of 2023 (August to December) would be over or at least, the import volume would be the same as it in last year that reached 3,44 million tons.
“This would make 2023 palm oil imports about 6,11 million tons or escalate 24% to 2022 import volume,” PalmPulse noted. (T2)
