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Malaysian palm oil exports totalled 381,790 tonnes during 1-15 March, down from 422,425 tonnes in the previous period, as purchases from key destination markets weakened, according to figures from cargo surveyor Intertek Testing Services (ITS). The figure excludes liquid oils, coconut oil and used cooking oil (UCO) shipments, with volumes falling 10%, or 40,635 tonnes, from the 1-15 February period.
Exports of palm oil to India rose 13%, or 7,570 tonnes, to reach 64,320 tonnes compared with the same period in February, driven by higher crude palm oil (CPO) exports, which climbed to 60,820 tonnes from 55,250 tonnes in the previous period.
Exports to Pakistan fell to zero compared with 21,000 tonnes a month earlier, while shipments to Sri Lanka also dropped to zero from 3,000 tonnes in the prior period.
Exports to the Middle East fell 58%, down 32,600 tonnes from February to 23,400 tonnes in the first 15 days of March. The earlier rise in February was attributed to restocking ahead of Ramadan demand.
Chinese Demand Falls On Competitive Soybean Oil PricesMeanwhile, supplies to China fell by 14,140 tonnes, or 64%, to 7,900 tonnes compared with the same period in February. Chinese imports consisted mainly of palm acid oil (PAO) and palm stearin.
China typically imports PAO for animal feed, biodiesel feedstock, fatty acid distillation and detergent powder manufacturing, and stearin for oleochemical energy applications.
Chinese demand for Malaysian olein was weak due to negative import margins and soybean oil being cheaper relative to palm oil, sources told Fastmarkets.
Malaysian exports to the European Union more than doubled, rising by 63,144 tonnes to reach 116,259 tonnes compared with the previous period.
The increase in shipments to the EU was largely driven by higher exports of palm oil mill effluent (POME) — a waste product used mainly as feedstock for biofuel and fertiliser production — which nearly tripled from 13,025 tonnes to 34,630 tonnes a month earlier.
CPO shipments also helped support the rise in exports to the EU, climbing by 9,000 tonnes to 20,000 tonnes compared with 11,000 tonnes in February.
Exports to the African continent fell 26% month-on-month, with a sharp decline in shipments to South Africa, which dropped 87%, or 10,900 tonnes, to 12,500 tonnes compared with the previous period.
Malaysia also exported 96,821 tonnes of palm oil to Asia Oceania, up 38%, or 26,651 tonnes, from 70,170 tonnes in the previous period. The Philippines was the top destination with 40,870 tonnes, followed by Japan with 32,620 tonnes.
More than half of the total volume to the Asia Oceania region consisted of RBD palm olein at 61,015 tonnes, nearly double the previous period's volume of 44,870 tonnes, while RBD palm oil exports rose to 13,440 tonnes, compared with 9,710 tonnes in the prior period.
Malaysia exported 33,622 tonnes of used cooking oil during 1-15 March, up sharply by 10%, or 3,072 tonnes, from 30,550 tonnes a month earlier, with volumes heading mainly to the United States at 16,900 tonnes and Singapore at 15,050 tonnes.
Source: Fastmarkets