China, India Palm Oil Demand to Rise, Prices to Gain — MPOC

22-Apr-2025 12:38 PM

China, India Palm Oil Demand to Rise, Prices to Gain — MPOC
★ Palm Oil Demand from China and India Expected to Rise in Coming Months, Supporting Prices — MPOC.
★ According to the Malaysian Palm Oil Council (MPOC), China may increase palm oil imports in May and June to replenish its stocks ahead of the typically high-consumption summer season.
★ India is also expected to restock its depleted reserves, taking advantage of current price levels.
★ In the coming weeks, palm oil prices are expected to remain stable around RM 3,900 per ton, which MPOC considers a “fair price” level.
★ This price stability is being supported by improving soybean oil prices, which enhances palm oil’s price competitiveness in global markets.
★ So far in 2024, India has imported around 3.03 million tons of palm oil from Malaysia, accounting for approximately 18% of Malaysia’s total edible oil exports. China has purchased 1.39 million tons in the same period.
★ However, MPOC has also warned that palm oil stock levels in Malaysia may rise starting April, though the increase will likely be limited due to weak production growth in Sabah.
★ Palm oil production in Sabah fell by 10% from January to March 2025, marking the lowest level in five years, which may help contain excessive stock buildup.
★ Overall, Malaysia’s total palm oil output in 2025 is projected to be around 19 million tons, slightly below the 19.3 million tons produced in 2024.