Chinese High Oleic Sunflower Oil Market Declines Due to Illegal Blending

Published 2025년 5월 1일

Tridge summary

The Chinese high oleic sunflower oil (HSFO) industry is experiencing a significant downturn due to a sharp decline in imports since January 2025. This decline is attributed to the previous blending practices by peanut oil producers becoming economically unviable after a price increase in HSFO in October 2024, which reduced the price difference with peanut oil. Additionally, the Chinese government has enforced strict measures against illegal blending, including penalties of up to five years in prison, leading to a market standstill with only minimal steady demand. According to Mr. Fan Gan of ZJGG, this represents a deep, structural shift with long-term implications for the industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to Mr. Fan Gan of ZJGG, the Chinese high oleic sunflower oil (HSFO) industry is experiencing a downturn. Since January 2025, HSFO imports into China have dropped sharply, contrasting with previous periods when the country regularly imported at least 20,000 tons per month. The main reason is that some unscrupulous peanut oil producers were mixing HSFO to reduce production costs. In October 2024, the price of HSFO increased and the price difference between it and peanut oil decreased. Blending is currently not economically feasible. Despite this, the Chinese government announced strict measures against illegal schemes, providing penalties of up to five years in prison for serious violations. As a result, the HSFO market in China has come to a standstill, except for a small amount of steady demand. Mr. Fan believes this drop in demand is not temporary but a deep, structural shift that will have long-term effects on the industry. For almost 30 years of expertise in the ...

Source: UkrAgroConsult