Chinese High Oleic Sunflower Oil Market Declines Due to Illegal Blending
According to Mr. Fan Gan of ZJGG, the Chinese high oleic sunflower oil (HSFO) industry is experiencing a downturn. Since January 2025, HSFO imports into China have dropped sharply, contrasting with previous periods when the country regularly imported at least 20,000 tons per month. The main reason is that some unscrupulous peanut oil producers were mixing HSFO to reduce production costs.
In October 2024, the price of HSFO increased and the price difference between it and peanut oil decreased. Blending is currently not economically feasible. Despite this, the Chinese government announced strict measures against illegal schemes, providing penalties of up to five years in prison for serious violations.
As a result, the HSFO market in China has come to a standstill, except for a small amount of steady demand. Mr. Fan believes this drop in demand is not temporary but a deep, structural shift that will have long-term effects on the industry.
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