China: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in China

The Chinese palm kernel oil market dropped to $X in 2022, declining by -5.1% against the previous year. The market value increased at an average annual rate of +2.6% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, the market attained the peak level at $X in 2019; however, from 2020 to 2022, consumption failed to regain momentum.

Palm Kernel Oil Production in China

In value terms, palm kernel oil production stood at $X in 2022 estimated in export price. Over the period under review, production showed a slight contraction. The most prominent rate of growth was recorded in 2015 when the production volume increased by 153%. Palm kernel oil production peaked at $X in 2016; however, from 2017 to 2022, production stood at a somewhat lower figure.

Palm Kernel Oil Exports

Exports from China

In 2022, after three years of decline, there was significant growth in overseas shipments of palm kernel and babassu oil, when their volume increased by 45% to X tons. Overall, exports continue to indicate a noticeable increase. The pace of growth appeared the most rapid in 2014 when exports increased by 470% against the previous year. As a result, the exports attained the peak of X tons. From 2015 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, palm kernel oil exports amounted to $X in 2022. In general, exports posted a buoyant increase. The pace of growth appeared the most rapid in 2017 with an increase of 297%. The exports peaked at $X in 2018; however, from 2019 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

The UK (X tons) was the main destination for palm kernel oil exports from China, with a 55% share of total exports. Moreover, palm kernel oil exports to the UK exceeded the volume sent to the second major destination, Germany (X tons), fourfold. The third position in this ranking was held by Tanzania (X tons), with a 2.4% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to the UK was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: Germany (-46.7% per year) and Tanzania (+29.2% per year).

In value terms, the UK ($X) emerged as the key foreign market for palm kernel and babassu oil exports from China, comprising 36% of total exports. The second position in the ranking was held by Germany ($X), with a 6.2% share of total exports. It was followed by Tanzania, with a 3.5% share.

From 2012 to 2022, the average annual growth rate of value to the UK was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: Germany (-38.7% per year) and Tanzania (+72.3% per year).

Export Prices by Country

The average palm kernel oil export price stood at $X per ton in 2022, dropping by -28.3% against the previous year. Overall, the export price, however, saw a perceptible expansion. The pace of growth appeared the most rapid in 2015 when the average export price increased by 1,134%. The export price peaked at $X per ton in 2021, and then dropped significantly in the following year.

There were significant differences in the average prices for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was Tanzania ($X per ton), while the average price for exports to Germany ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Democratic Republic of the Congo (+119.1%), while the prices for the other major destinations experienced more modest paces of growth.

Palm Kernel Oil Imports

Imports into China

In 2022, purchases abroad of palm kernel and babassu oil decreased by -14.6% to X tons, falling for the third consecutive year after three years of growth. Over the period under review, total imports indicated slight growth from 2012 to 2022: its volume increased at an average annual rate of +1.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports decreased by -42.3% against 2019 indices. The most prominent rate of growth was recorded in 2017 with an increase of 28%. Imports peaked at X tons in 2019; however, from 2020 to 2022, imports remained at a lower figure.

In value terms, palm kernel oil imports shrank to $X in 2022. Overall, total imports indicated tangible growth from 2012 to 2022: its value increased at an average annual rate of +3.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +47.1% against 2020 indices. The growth pace was the most rapid in 2021 when imports increased by 48%. As a result, imports attained the peak of $X, leveling off in the following year.

Imports by Country

In 2022, Indonesia (X tons) constituted the largest supplier of palm kernel oil to China, accounting for a 71% share of total imports. Moreover, palm kernel oil imports from Indonesia exceeded the figures recorded by the second-largest supplier, Malaysia (X tons), threefold.

From 2012 to 2022, the average annual rate of growth in terms of volume from Indonesia totaled +1.8%.

In value terms, Indonesia ($X) and Malaysia ($X) appeared to be the largest palm kernel oil suppliers to China.

Among the main suppliers, Malaysia, with a CAGR of +4.2%, recorded the highest rates of growth with regard to the value of imports, over the period under review.

Import Prices by Country

In 2022, the average palm kernel oil import price amounted to $X per ton, growing by 17% against the previous year. Overall, import price indicated a measured expansion from 2012 to 2022: its price increased at an average annual rate of +2.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, palm kernel oil import price increased by +129.6% against 2019 indices. The growth pace was the most rapid in 2021 when the average import price increased by 74%. The import price peaked in 2022 and is likely to continue growth in the immediate term.

Average prices varied somewhat amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Malaysia ($X per ton), while the price for Indonesia stood at $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Malaysia (+5.2%).

Source: IndexBox Platform

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