Press Release
Indonesian Palm Oil Association (IPOA)
Palm Oil Price And Export Improving
Compared to May 2020, the crude palm oil (CPO) production in June 2020 increased by 13.5% to 4,096,000 tons, domestic consumption dropped by 3.5% to 1,331,000 tons, exports significantly increased by 13.9% to 2,767,000 tons, and CPO price steadily showed an increase from the average USD 526 in May 2020 to USD 602 per ton-Cif Rotterdam in June 2020. Export value also surged from USD 1.474 billion to USD 1.624 billion.
If compared to January-June 2019, the production of CPO and PKO during January-June 2020 at 23,504,000 tons was lower by 9.2%, domestic consumption reached 8,665,000 tons or higher by 2.9%, export volume reached 15,503,000 tons or 11.7% lower and export value increased by 6.4% to USD 10.061 billion.
The higher production in June 2020 compared to that in May 2020 was presumed to have caused by the fact that besides the carryover from May 2020 due to Idul Fitri celebration, also because a number of producing provinces had already seen a period of rising production trend.
The lower domestic consumption in June compared to May 2020 was presumed to have caused by the implementation of large scale social restriction (PSBB). The food consumption dropped by 3.9% to 638,000 tons. The percentage of food consumption decrease was lower than the average during the previous three months at 5.4%. The consumption of biodiesel in June dropped by 5.4% from that of May 2020 at 551,000 tons. Compared to the period of January-June 2019, the biodiesel consumption in 2020 surged by 25% due to the implementation of the mandatory B30 program. Domestic oleo-chemical consumption in June 2020 steadily increased by 6.8% if compared to that in May despite of lower rate.
The increase of exports was high enough in June 2020, after seeing a drop during the previous month. The increase was seen in CPO (31%), refined palm oil (10.2%), lauric oil (6%) and also the export of biodiesel. The largest increase of export was seen to the destination of India (52%) to 583,000 tons, Africa (43.3%) to 271,000 tons, China (33%) to 440,000 tons, and Pakistan (32%) to 203,000 tons. The increase of CPO export to India reached 206,000 tons from the total increase, but there was an export decrease of other products, mainly refined palm oil.
The economies of China, India and many other countries have started to be recovering, so that their demands for vegetable oils have been increasing. The Indonesian economy has been also recovering, raising an expectation that its demand of palm oil for food will be also increasing, along with the rising demand for oleochemical and biodiesel. The increase of demand and price of crude oil is predicted to raise the price of vegetable oils.
Jakarta, 12 August 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 wwf.org.uk
