Production Remains Low, Palm Oil Price Stays High

Press Release
Indonesian Palm Oil Association (IPOA)

PRODUCTION REMAINS LOW, PALM OIL PRICE STAYS HIGH

The average price of palm oil in February 2021 reached US$ 1,085/ton CIF Rotterdam, which was higher by  US$ 60 than the price in January when it reached the highest level during the last 6 years.  The high price was resulted from the low production  of vegetable oils and the increase of biodiesel production as a result of the commitments of several  governments, which include Indonesia, USA, Brazil  and Germany, to continually implement the program of using biodiesel. The Oil World predicted that global production of biodiesel in 2021 will reach 47.5 million tons, which is higher by 2.2 million tons than that in 2020 and 1.5 million tons higher than that in 2019.

Due to the high price, many importing countries decided to hold their purchases that had resulted in the drop of exports.

Indonesia’s exports of palm oil in February 2021 were predicted at around 1,994 thousand tons, which were 867 thousand tons (-30%) lower than that at the previous month. So was the palm oil export value, which was predicted at around US$ 2.0 million or US$ 600 million (-23%) lower than that of the previous month.

Palm oil production in February also saw a decrease at around 10% from that in January due to seasonal factor, while compared to that in 2020, the production in February 2021 was lower 6% than that in February 2020.

Unlike the exports, domestic consumption in February 2021 increased by 5.5% to 1,600 thousand tons if compared to that in January. The consumption for foods rose by 4.2% to 795 thousand tons, for biodiesel rose by 9.6% to 631 thousand tons, while for oleochemical dropped by 2.2% to 174 thousand tons. The increase of domestic consumption was caused by the easing of the large scale social restrictions (PSBB) implementation.

Jakarta, 16 April 2021
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI
Phone/Fax:
021-57943871
Fax. 021-57943872

 

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