Rise in palm oil prices has changed the dynamics of the Asia-Pacific market this week

Published 2024년 9월 27일

Tridge summary

Recent developments in the Asian-Pacific region have led to a significant increase in palm oil prices from Malaysia, which has resulted in market unrest and strategic shifts among processors and importers. India's decision to raise import duties has led to the cancellation of around 100,000 tons of palm oil purchases, affecting market dynamics and potentially limiting the rise in palm oil prices. This situation has also prompted price-sensitive Asian buyers to seek alternatives to palm oil, such as soybean and sunflower oil. The trends and market uncertainties are being closely monitored by industry experts, with concerns about demand and price stability in the winter quarter.

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

Original content

The recent surge in Malaysian palm oil prices has caused unrest in the Asia-Pacific region (APAC), significantly affecting market sentiment and trade dynamics. This price increase, coupled with India’s recent decision to increase import duties, has led to a series of cancellations and strategic shifts among processors and importers, thereby affecting the overall market dynamics. According to the latest market development data, Indian processors canceled about 100,000 tons of palm oil purchases scheduled for delivery between October and December. This decision followed New Delhi’s decision to raise import duties by about 20 percentage points, significantly increasing the total import duty on crude palm oil from the expected 5.5% to almost 27.5%. “The significant increase in duties and price hike in Malaysia has taken everyone by surprise,” said an Indian buyer operating an East Coast crushing plant. This sudden shift has created a unique situation in which SEZs could potentially ...

Source: UkrAgroConsult