Edible Veg. Oil Import to Guangdong with QTY Down & Price Up in May 2017


According to China Customs statistics, in May 2017, Guangdong Province imported edible vegetable oil 34,000 tons, down 32.4% year-on-year (YOY); worth 180 million yuan, down 14.6% YOY; average import price at 5,282.2 yuan per ton, up 26.3% YOY.

Characteristics of the import to Guangdong in May:

(1) Monthly import quantity decreased month by month, average price rising continuously.
The edible vegetable oil import began to decrease in April YOY and further fell in May to 34,000 tons, down 32.4% YOY and down 4.6% from April. The average import price rose YOY from last June for 12 months, reaching 5,282.2 yuan/ton this May, up 26.3% YOY and down 1.2% from this April.
See the chart below:

Trend of Edible Veg Oil Import to Guangdong Monthly Since 2016

(2) Ordinary trade dominated the import.
This May, Guangdong imported 33,000 tons by ordinary trade, down 33.1% YOY, accounting for 98.4% of the total import; imported 538.1 tons by processing trade, up 1.2 times YOY; imported 20.7 tons under Customs special control, down 18% YOY.

(3) Mostly imported from ASEAN.
This May, Guangdong imported 32,000 tons from ASEAN, down 35.8%, accounting for 92.9%; among them, 28,000 tons from Indonesia, up 18.8%; 3,022 tons from Malaysia, down 88%. In addition, the import from Australia was 1,592 tons, up 2.2 times.

(4) Palm oil was the major import.
This May, Guangdong imported 32,000 tons of palm oil, down 35.8%, accounting for 93.4%; imported 1,663 tons of rapeseed oil and mustard oil, up 2.2 times.

Causes of the Less Import Quantity:
Low season of veg. oil consumption in China, and rising price on international market

Considerable Problems:
(1) China has heavy dependence on imported vegetable oil due to short supply in the country.
(2) Malaysia cut down palm-oil export duties, likely benefiting the import to China.
Source: ETCN