Palm Oil Price Expected to Increase

By CnAgri2012-12-19 10:27:17 Print     Palm oil price averaged RMB6,375/MT at Chinese ports on December 18, up 4% over a month ago. Considering the slack season of palm oil production and China’s new palm oil import policy, palm price is predicted to go north in the first half of 2013.
 
    Palm oil production usually declines in the first quarter of a year, affecting palm oil supply in the international market.
 
    From 2013 on, the Chinese Quality Inspection Bureau will enforce new policies regarding palm oil imports. The requirements for palm oil transportation may cause palm oil shipment cost to increase RMB120/MT. Moreover, if imported palm oil is below standards, it must be refined at Chinese ports before sale, which may lead to a rise of production cost by RMB150/MT.

From “China Fruit &Vegetable Market Monthly Report”