Malaysian Palm Oil Exports Performance to MENA & Western Balkan Region
(January – September 2023)
A Review on MPO Performance
Middle East
Table 1: Export of Malaysian Palm Oil to Middle East Region
| COUNTRY | Jan-Sept 2023 | Jan-Sept 2022 | Change (MT) | Change (MT) | |
|---|---|---|---|---|---|
| 1 | TURKIYE | 682,871 | 678,115 | 4,756 | 0.70 |
| 2 | SAUDI ARABIA | 289,813 | 408,672 | (118,858) | (29.08) |
| 3 | IRAN | 163,928 | 388,987 | (225,060) | (57.86) |
| 4 | U.A.E | 136,781 | 253,340 | (116,558) | (46.01) |
| 5 | YEMEN ARAB REP. | 73,888 | 18,510 | 55,378 | 299.17 |
| 6 | OMAN | 36,311 | 71,623 | (35,312) | (49.30) |
| 7 | JORDAN | 31,340 | 24,742 | 6,597 | 26.66 |
| 8 | SYRIA | 21,950 | 31,957 | (10,007) | (31.31) |
| 9 | KUWAIT | 20,699 | 19,639 | 1,059 | 5.39 |
| 10 | QATAR | 19,754 | 25,979 | (6,225) | (23.96) |
| 11 | IRAQ | 12,638 | 32,788 | (20,150) | (61.46) |
| 12 | LEBANON | 6,388 | 4,423 | 1,966 | 44.44 |
| 13 | BAHRAIN | 5,659 | 4,446 | 1,213 | 27.28 |
| 14 | PALESTINE | 429 | 0 | 429 | – |
| Total | 1,502,450 | 1,963,222 | (460,772) | (23.47) |
Source : MPOB
Imports of Malaysian palm oil during January to September by the Middle East region registered a volume of 1,502,450 MT, which is 460,772 MT or 23.47% lower compared to the same period of 2022. Turkiye is the leading importer of Malaysian palm oil in this region with a volume of 682,871 MT. The country has recorded only a slight increase of 0.7% in imports of Malaysian palm oil. A significant drop in MPO imports in May, June and July contributed to the overall performance despite some improvement in MPO imports during August and September.
Imports of MPO to Saudi Arabia during the reviewed period dropped by 29% compared to last year. Indonesian palm oil (IPO) supplies at a discounted price have attracted the palm oil demand in the region. Hence, some of MPO’s market shares were taken by IPO. Freight cost has also returned to its regular rate. Saudi Arabia and UAE, which were used as the re-export hub to their neighbouring and Eastern African countries, has become less attractive and importers from those countries were importing directly from Malaysia.
Other countries that recorded an increase were Yemen (299.2%), Jordan (26.7%), Kuwait (5.4%), Bahrain (27.3%) and Lebanon (44.4%). Countries like Yemen, which traditionally imports palm oil from their neighbours opt to import directly from Malaysia taking advantage of the lower freight cost. Jordan and Lebanon registered an increase in MPO imports because MPO exporters used their ports for their shipments to Syria.
Imports of Malaysian palm oil by Iran showed a drop of 57.9%, registering a volume of 163,928 MT from 388,987 MT in the same period of 2022. Iran is still an important exporting country ranked as the region’s third-largest MPO export destination. Other countries that registered a drop in imports of MPO were UAE (46.0%), Oman (49.3%), Qatar (24.0), Syria (31.3%) and Iraq (61.5%).
Table 2: Breakdown of Malaysian Palm Oil Export
| PRODUCT | Jan – Sept 2023 | Jan – Sept 2022 | Diff (MT) | Diff (%) |
|---|---|---|---|---|
| RBD PL | 778,564 | 1,117,142 | (338,578) | (30.31) |
| RBD PO | 157,169 | 331,195 | (174,026) | (52.54) |
| RBD PS | 150,412 | 192,171 | (41,759) | (21.73) |
| CPL | 188,026 | 170,175 | 17,851 | 10.49 |
| CO / DPL | 195,348 | 136,802 | 58,546 | 42.80 |
| CPO | 22,401 | 1,000 | 21,401 | 2139.91 |
| Others | 10,528 | 14,736 | (4,208) | (28.55) |
| Total | 1,502,450 | 1,963,222 | (460,772) | (23.47) |
Source: MPOB
RBD palm olein is the most imported palm oil fraction in this region which accounted for 51.8% of the total palm oil products imported into the region. Most of the RBD palm olein in this region was imported by traditional markets such as Iran, Turkiye, Saudi Arabia, UAE and Oman, accounting for 96.3% of the total RBD PL imported into the region. Out of this volume, 18,243 MT exported to Turkey and Saudi Arabia were RSPO-certified PL.
Balkan
Table 1: Malaysian Palm Oil Exported to Balkan
| COUNTRY | Jan – Sept 2023 | Jan – Sept 2022 | Diff (Vol) | Diff (%) | |
|---|---|---|---|---|---|
| 1 | SERBIA | 183 | 414 | -230 | (55.66) |
| 2 | BOSNIA AND HERZEGOVINA | 96 | 24 | 72 | 299.25 |
| 3 | MONTENEGRO | 48 | 191 | (143) | (74.73) |
| 4 | MACEDONIA | 13 | 129 | (116) | (89.92) |
| Total | 340 | 758 | (417) | (55.09) |
Source: MPOB
The Balkan region comprising Bosnia & Herzegovina, Serbia, Montenegro and Macedonia imported a small volume of Malaysian palm oil. During the period from January – September 2023, the region imported 340 MT of Malaysian palm oil, and the volume declined by 417 MT or 55.1% compared to the corresponding period of last year. The region is mainly a sunflower-producing region, and the higher sunflower seed output has impacted palm oil offtake.
Table 2: Breakdown of Malaysian Palm Oil Export
| PRODUCT | Jan – Sept 2023 | Jan – Sept 2022 | Diff (MT) | Diff (%) |
|---|---|---|---|---|
| CO / DPL | 232 | 332 | (100) | (30.17) |
| RBD PO | 109 | 82 | 27 | 0.00 |
| RBD PL | 0 | 345 | (345) | (100.00) |
| Total | 340 | 758 | (417) | (55.09) |
For this period, cooking oil and RBDPO were imported by the region, which accounted for 68.2% and 32% repectively.
For more info please contact Mr. Suhaili
Email : msuhaili@mpoc.org.my
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