JAKARTA. Exports of palm oil products increased by just 2 percent on a monthly basis to 2.6 million tons in May, the latest data from the Indonesia Oil Palm Producers Association (GAPKI) shows.

“Approaching Ramadhan, demand for palm oil usually surges, but this time around, exports were up only slightly,” said GAPKI executive director Fadhil Hasan.

He said exports declined across all markets; to Pakistan by 31 percent to 142,210 tons; to the Middle East by 23 percent; to China by 7 percent and to Europe by 2 percent.

Pakistan shifted much of its demand for the commodity to Malaysia as the latter, starting from May, imposes a zero export tax for crude palm oil (CPO) derivatives, contrary to Indonesia, which imposes export levies for similar products.

Pakistan’s palm oil imports from Malaysia surged to more than 1 million tons in that month from a previous monthly import volume of 500,000 tons.

Total exports for the first five months increased by 29 percent annually to 12.1 million tons, while production growth was stagnant in the same period, leading to low CPO and derivative stocks of 621,000 tons in May.

The CPO price ranged between $695-$740 per ton in May; $640-$725 per ton in June and below $700 per ton in the first week of July.

It is projected that the price will hover around $650-$690 per ton in the next two weeks. (Stefani Ribka)

Editor: Barratut Taqiyyah Rafie