China and India to actively purchase palm oil in the short term

Demand for palm oil from India and China is expected to pick up significantly in the coming months as oil price adjustments create attractive conditions for large buyers.

Palm oil prices in Malaysia rose almost 20% last year but have fallen around 12% this year as the tropical product has lost some of its competitive edge against other oils. But experts believe these markets will recover in the short term as there is strong buying from India and China.

Indian buyers, who have been cutting back on palm oil imports since December, are now actively resuming purchases for June-August as palm olein prices are lower than those of rival oils, according to Glenauk Economics. Chinese palm oil importers are also actively buying for June-August deliveries, which will help keep prices between RM3,900 and RM4,200 per tonne for the next six months, analysts said.

According to OleoScope, on 06/09/2025, the price of RBD palm oil (Daylian) for June delivery was $1,197.74/t, which is $1.40/t higher than the previous value from 06/06/2025 ($1,196.34/t).

Experts note that the stability of demand will continue to depend on the competitiveness of palm oil prices compared to other oils, with peak export volumes occurring in August.

High demand for palm oil on the world market will provide additional support not only to export quotations for the tropical product itself, but also for the main competing oils. High import demand for “palm” may have an early impact on the recovery of production in Malaysia and Indonesia, which will accordingly be reflected in the pricing of soybean and sunflower oils, forming an important support factor for them in their export value, analysts note.

Tags: India, palm oil, China