Malaysian companies sign deals to export 1.332 million tons of palm oil to China
In Malaysia, documents have been signed between three Chinese companies and four Malaysian companies for the trade of palm oil as part of the Malaysia-China Palm Oil Business Forum held this week:
(i) The first document signed between China’s Yantai Tianmao Edible Ltd. Co.. and Sime Darby Plantation Berhad for the purchase of refined, bleached and deodorized (RBD) palm stearin in the amount of 100,000 tons;
(ii) The second document signed between Yihai Kerry (Shanghai) International Trade Co., Ltd, and PGEO Marketing Sdn. Bhd. for purchase 1.3 million tons of RBD palm olein,
(iii) The third document was signed between China’s Yizheng Fangshun Industry Ltd. Co. and Malaysia’s Cacao Paramount Sdn. Bhd. (a subsidiary of Teck Guan Group) for the purchase of RBD palm stearin in the amount of 120,000 tons; and,
(iv) The fourth document was signed between China’s Yizheng Fangshun Industry Ltd. Co. and SOP Edible Oils Sdn Bhd. for the purchase of RBD palm olein in the amount of 100,000 tons.
In 2018, Malaysia exported 3.07 million tons of palm oil and palm products, an increase of 7.3% compared to 2.86 million tons of palm oil in 2017. China is Malaysia’s second biggest importer of palm oil and palm-based products in 2018.
The export of Malaysian palm biodiesel to China increased significantly from 140 tons in 2017 to 41,450 tons in 2018.
The increase in palm oil import by China especially during the middle of 2018 was factored by the bilateral trade tension between the United States of America and China. China had imposed higher import tax on soybean that subsequently lowered the soybean import. In addition, the increased price of Brent oil and petrol diesel has also attributed to the shifting of the market into favoring palm oil.
Category: Fuels
