Lang
Malaysia’s deputy commodities minister said on Sunday that the country’s palm oil exports to China are expected to remain resilient this year, despite higher prices compared with competing oils and changing buying patterns among Chinese consumers.
Deputy Plantation and Commodities Minister Chan Foong Hin said after the China-Malaysia Oils and Fats Forum that Malaysian palm oil exports to China declined in 2024 because soybean prices were lower than palm oil and because cooking oil consumption had fallen.
He said: “The population is ageing and shrinking, while consumer behavior is changing as people become more health-conscious. These factors have affected buying patterns in China.”
China is Malaysia’s second-largest palm oil importer after India.
Chan noted that Malaysia’s palm kernel oil exports to China increased last year because of stronger demand.
He said exports of palm oil products to China were valued at RM10.57 billion, or $2.39 billion, with palm kernel oil export volume rising by 40%.
These exports were mainly directed to China’s oleochemical industry for producing surfactants.
Malaysian Palm Oil Board (MPOB) director-general Ahmad Parveez Ghulam Kadir said the price spread between palm oil and soybean oil remains a challenge for attracting demand, but he remains optimistic about Chinese demand.
He said: “If exports do not increase this year, we at least hope to maintain the export level achieved last year.”
According to MPOB data, Malaysia’s total palm oil exports to China reached 1.39 million tonnes in 2024, down 5.3% from the previous year.
Beijing HE Yi Rong Investment Group chairman Zhou Shiyong said palm oil exports to China will depend heavily on price factors, as the Chinese market is highly price-sensitive.