Malaysia seeks to regain palm oil market share in China

The decline in exports was partly due to rising palm oil prices, which had overtaken soyabean oil prices, making the latter the preferred choice for Chinese buyers, Johari said in the 27 November report.

“For the first time, the price of our palm oil has increased and is more expensive than soyabean oil,” he told reporters at the Malaysian Palm Oil Council (MPOC) Industry Dialogue with Chinese Buyers.

Johari said China had been a key and strategic market for Malaysia, maintaining its position as one of the country’s top palm oil export destinations for over a decade.

“However, our exports to China have fallen by almost 39% in the first 10 months of this year. This sharp decline suggests deeper challenges relating not only to competitiveness and logistics but also to pricing dynamics and market positioning,” he added.

Johari said the aim of the event was to understand how Malaysia could regain its competitiveness and restore its long-established position in the Chinese market.

“This group collectively accounts for roughly 2.5M tonnes of China’s palm oil requirements,” he said in his opening remarks.

“We also welcome continuous dialogue to better align expectations on pricing trends, market developments and long-term supply planning.”

MPOC hosted a trade networking visit for 37 Chinese buyers from 25-27 November aimed at expanding Malaysian palm oil exports and reinforcing confidence in Malaysia’s palm oil supply chain.

Tags: China, exports, prices, Malaysia, palm oil, shipments, soyabean oil