Lang
According to Mr Fan Jian of ZJGG, China's high-oleic sunflower oil (HSFO) sector has seen a marked decline. Since January 2025, imports of this oil into China have dropped sharply compared with earlier periods, when the country was importing at least 20,000 tonnes a month. The main reason behind this decline is that some unscrupulous peanut oil producers were blending in high-oleic sunflower oil to cut production costs.
However, since October 2024 the situation has started to change, as prices of high-oleic sunflower oil have risen, narrowing the price gap with peanut oil and making continued blending economically unviable. In addition, the Chinese government has recently imposed strict measures against illegal blending practices, with penalties reaching up to five years in prison in serious cases.
As a result, China's high-oleic sunflower oil market has almost come to a standstill, apart from a small amount of stable demand. Mr Fan believes this drop in demand is not temporary but represents a deep structural shift that will have long-term effects on the sector.
Source: Al Mal Forum