Rising palm oil prices change Asia Pacific market dynamics this week

Published 2024년 9월 27일

Tridge summary

Palm oil prices in Malaysia have surged, causing significant market disruption across the Asia Pacific region. This is particularly evident in India, where import duties have been raised significantly, leading to the cancellation of around 100,000 metric tonnes of palm oil purchases. This cancellation, representing 13.3% of India's average monthly imports, has prompted refineries to cancel existing purchases in favor of more profitable alternatives. The situation is prompting Asian buyers to seek alternatives to palm oil, such as soybean and sunflower oils, and the long-term implications of these market shifts are uncertain.

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

Original content

The recent spike in Malaysian palm oil prices has sent ripples across the Asia Pacific (APAC) region, significantly impacting market sentiment and trade dynamics. This price hike, coupled with India’s recent decision to hike import duties, has led to a series of cancellations and strategic shifts among millers and importers, thereby impacting overall market dynamics. According to the latest market developments, Indian millers have cancelled around 100,000 metric tonnes of palm oil purchases scheduled for delivery between October and December. This follows New Delhi’s decision to hike import duties by around 20 percentage points, significantly increasing the overall import duty on crude palm oil from the previously expected 5.5% to nearly 27.5%. The cancellations, which represent around 13.3% of India’s average monthly palm oil imports, have sent shockwaves through the industry. “The significant tariff hike and price increase in Malaysia has caught everyone by surprise,” said an ...

Source: Oilworld