Malaysia’s palm oil exports fall in first half of April, weighed by lower shipments to the Middle East: cargo surveyor

The figure includes exports of crude palm oil (CPO), processed palm oil, palm kernel oil, oleochemicals and palm oil waste but excludes shipments of used cooking oil. 

Declines in exports were seen across most regional destinations, with the largest drop observed in shipments to the Middle East at 11,550 tonnes, or 114,650 tonnes lower from 126,200 tonnes during March.

Shipments to Egypt and Iran fell to zero from 25,200 tonnes and 61,0000 tonnes respectively, in the previous month, while exports to the UAE dropped by 37,000 tonnes to 3,000 tonnes.

Malaysia also exported 2,250 tonnes of palm oil to Oman and 6,300 tonnes to Saudi Arabia, an increase from zero tonnes in the previous month. 

Palm oil shipments from Malaysia to India and the sub-continent also fell in the first half of April to 107,500 tonnes, down by 70,100 tonnes from 177,600 tonnes in March.

The decline was led by a reduction in exports to India, with ITS data showing volumes at 102,300 tonnes from 150,600 tonnes, while shipments to Pakistan fell to zero tonnes from 25,000 tonnes in the previous month.

Meanwhile, exports to Sri Lanka rose by 3,200 tonnes to 5,200 tonnes.

Majority of Malaysia’s palm oil exports to India comprised CPO at 84,700 tonnes, with volumes falling by 58,600 tonnes from 143,300 tonnes in March.

Meanwhile, exports to the African continent also fell during April 1-15 by 35,269 tonnes to 151,550 tonnes, with the largest decline seen in exports to Togo (down 32,500 tonnes to 500 tonnes), followed by to Kenya (down 22,229 tonnes to 80,850 tonnes). 

Nonetheless the drop in shipments to the continent was partially offset by higher shipments to Djibouti (up by 20,200 tonnes from zero in March), Mozambique (up by 12,280 tonnes to 25,200 tonnes) and South Africa (up by 9,300 tonnes to 12,800 tonnes).

Malaysia’s palm oil exports to China totaled 54,760 tonnes during April 1-15, down by 12,790 tonnes from 67,550 tonnes the previous month.

Nearly half of the shipments comprised refined bleached deodorised (RBD) palm stearin at 23,300 tonnes, a drop of 10,850 tonnes from March 1-15, while exports of RBD palm olein rose by 6,700 tonnes to 11,000 tonnes.

Malaysia also shipped more RBD palm kernel oil to China in April, with exports at 10,140 tonnes compared to 800 tonnes a month earlier.

Palm oil exports to the EU saw the smallest decline during April 1-15, with shipments at 99,375 tonnes, down by 223 tonnes from 99,598 tonnes in March 1-15.

An increase in exports of palm oil mill effluent (POME) at 59,300 tonnes (up by 24,610 tonnes from March) helped to offset declines in several other products, including palm fatty acid distillate (PFAD) which fell by 12,210 tonnes to 14,990 tonnes. 

Malaysia’s exports of CPO to the EU also fell by 2,500 tonnes to 3,000 tonnes.

Additionally, Malaysia’s exports to Turkey fell to zero during the first half of April from 30,900 tonnes the same period a month ago, while shipments to the Asia Oceania region also fell to 129,645 tonnes, marking a decline of 37,105 tonnes.

The largest drop was seen in exports to South Korea, which fell by 13,900 tonnes to 6,700 tonnes.

Shipments to the Americas also fell to 25,638 tonnes, down 21,487 tonnes from 47,125 tonnes the previous month. 

Sources told Fastmarkets that the monthly decline in Malaysia’s April exports could persist, with demand for palm oil tempered due to the recent spike in prices due to the ongoing Middle East conflict.

Freight rates also rose due to higher fuel costs, following a jump in crude oil prices, causing landed costs of palm oil to destination markets to increase, with freight movement to the Middle East also slowing.

Meanwhile, palm oil output in Malaysia is expected to rise in April from March as production exits the seasonally lower period in the first quarter of the year.

This could limit the drawdown in stock levels in Malaysia, with inventories at the end of March reported at 2.267 million tonnes, down by 16% from the previous month but 45% higher compared to year-ago levels.

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