China’s vegetable oil market expands on record palm oil imports

China’s vegetable oil imports reached 500,000 tonnes in May 2026, up 8.2% year-on-year. According to customs data, cumulative imports for January–May totaled 2.93 million tonnes, marking a 17.5% increase from the same period last year. Despite the overall growth, trends varied significantly among different oil categories.

Palm oil posted the strongest growth, with imports reaching 220,000 tonnes in May, up 25.2% year-on-year. For the first five months of the year, imports totaled 1.11 million tonnes, a sharp 54.8% increase. This segment was the main driver of overall import growth, supported by strong shipments from Southeast Asia and stable demand from the food and consumer goods sectors.

Soybean oil imports remained relatively modest at 10,000 tonnes in May, up 17.4% year-on-year, while January–May imports reached 30,000 tonnes, up 20.8%. Domestic soybean crushing continues to be the primary source of supply, with imports playing only a supplementary role. Rapeseed oil imports, meanwhile, fell 5.6% year-on-year during the first five months to 970,000 tonnes, despite a slight recovery in May.

At the same time, China imported 11.79 million tonnes of soybeans in May, down 15.3% from a year earlier. Total soybean imports for January–May reached 36.94 million tonnes, 0.4% below the corresponding period in 2025. Analysts note that lower soybean arrivals could limit the growth of soybean oil production in the medium and long term.

The spot market showed mixed performance on June 23. Palm oil prices edged higher amid declining port inventories and limited supply, while soybean oil prices remained stable due to high stocks of around 1.2 million tonnes and weak seasonal demand. Rapeseed oil prices, however, declined as growing domestic inventories and sluggish consumption weighed on the market.

Additional pressure has come from lower crude oil prices following the easing of tensions between the United States and Iran, which reduced expectations for biodiesel demand. In the short term, analysts expect diverging trends across the vegetable oil complex: palm oil is likely to remain moderately supported, soybean oil is expected to trade sideways, and rapeseed oil may continue to face pressure from ample supply and weak demand.