Chinese Import of Oils and Fats Dropped in May

Data from Oil World showed Chinese import of 17 oils and fats in May plunged 53.3% to 533,000 MT from 1.185 million MT in May last year.  Sharp declines were posted in soybean oil (-93.1%), sunflower oil (-87.3%), groundnut oil (-56.0%), palm oil (-54.2%), rapeseed oil (-45.8%), and tallow & grease (-40.0%).  This contrasted with coconut oil which leaped 31.6%, castor oil 2.1% and flat growth in palm kernel oil.

Import during the month of soybean oil shrank to 9,000 MT (130,000 MT last year), sunflower oil to 16,000 MT (126,000 MT), groundnut oil to 11,000 MT (25,000 MT), palm oil to 256,000 MT (559,000 MT), rapeseed oil 117,000 MT (216,000 MT), tallow & grease 3,000 MT (5,000 MT).  On the other hand, coconut oil import jumped to 25,000 MT (19,000 MT), castor oil to 38,000 MT (37,000 MT), and palm kernel oil steady at 32,000 MT (32,000 MT)

The cumulative figure for the five-month period to May likewise was clipped by 58.3% at 2.477 million MT from 5,993 million MT due to sharp decline in consumption.  Oil World cited several factors that affected consumption in the country such as “demand destruction in response to the record-high prices, various Covid-related lockdowns in several big cities for an extended period of time as well as a slowdown of economic activity and limited disposable income.”.  Figures showed all commodities, but coconut oil reflected steep import shortfalls.  Coconut oil increased 22.1% to 94,000 MT from 77,000 MT.