Exports And Local Demand Continually Rising

Press Release
Indonesian Palm Oil Association (IPOA)

Exports and local demand continually rising

The export value of palm oil products in July 2020 reached US$ 1.868 billion or around 13.6% of the total national export value (US$ 13.3 billion). The export value increased by US$ 244 million compared to the export value in June 2020. The increase was supported by the increase of crude palm oil (CPO) price from the average of US$ 602 cif Rotterdam in June 2020 to around US$ 659 in July 2020 and the increase of export volume by 362,000 tons from 2,767 thousand tons to 3,129 thousand tons in July 2020.

The increase of export volume was due to the increase of exports of processed CPO products and lauric. The export of processed CPO products increased by 352 thousand tons from 1,609 thousand tons to 1,961 thousand tons, while lauric (PKO and processed PKO) increased by 32 thousand tons. The export of oleochemical product was relatively stagnant, while export of biodiesel and CPO decreased by 3.0 thousand tons and 19 thousand tons respectively.  Exports to China and the Middle East were the major contributors to the export increase in July, as the export to China rose by 188 thousand tons (43%) to 629 thousand tons and to Middle East rose by 107 thousand tons (65%) to 273 thousand tons. Export to India decreased by 31 thousand tons (5%) and to Africa decreased by 41 thousand tons (15%).

Although the export volume in July 2020 increased, the export volume year on year (YoY) until July 2020 decreased if compared to that of the same period last year. Total exports of palm oil products until July 2020 reached 18,632 thousand tons or 1,189 thousand tons lower than total exports during the same period last year (YoY). The export to China in 2020 reached 2,634 thousand tons or only around 61% of the total export to the country last year at 4,281 thousand tons (YoY). Meanwhile, the export to India increased to 3,249 thousand tons, which was higher by 22% from export last year.

Compared to June 2020, the local consumption in July increased by 97 thousand tons to 1,428 thousand tons. The local consumption increase was mostly contributed by the increase of biodiesel consumption by 87 thousand tons to 638 thousand tons in  July. The consumption of oleochemical product also increased by 6.0 thousand tons to 148 thousand tons and for food consumption increased by 4.0 thousand tons to 642 thousand tons. As of July 2020, the total local consumption reached 10,093 thousand tons or 3.0% higher than that of last year.

The largest increase was seen in oleochemical product at 45% and biodiesel at 27%, while for food products was 15% lower. The production of CPO in July 2020 reached 3,849 thousand tons or 6.2% lower than that of last month and year on year (YoY) 8.2% lower than that of last year. The low production in 2020 was predicted to be resulted from a lack of fertilization due to cost reduction that caused by low prices last year. With such production, final stock in July 2020 amounted to 3,618 thousand tons or 253% of the consumption in July.

Jakarta, 20 September 2020
The Indonesian Palm Oil Association (Gapki)

For further information, please contact:

Ir. Mukti Sardjono, M.Sc
Direktur Eksekutif GAPKI
Ph. 021-57943871, Fax. 021-57943872

Featured image via inford.org