Until September 2017, Palm Products Demand is Still In Positive Trends
By : Hariyanto And Aldo Bella Putra | Friday, November 17 2017 - 21:00 IWST
INDUSTRY.co.id - Jakarta - Indonesian Palm Oil Entrepreneurs Association (GAPKI) said the demand for palm oil products from export destination countries still recorded growth as of September this year with an increase in demand from the Middle East by 26%, Pakistan 9%, and the EU 1%.
"Overall, the performance of palm oil exports is still in a positive trend with a total volume of 2.76 million tons," Gadki Secretary General Togar Sitanggang told reporters in Jakarta on Friday (17/11/2017).
The performance of palm oil exports, excluding biodiesel and oleo chemicals in September 2017 which decreased 7.5% on a month to month basis. However, the figure is still high when compared with the export trend throughout 2017.
On the other hand, the depletion of Indonesian and Malaysian palm oil stocks hoisted prices in global markets. During September 2017, the daily price of the commodity moved in the range of US $ 687.60 to US $ 760 per metric ton with an average price of US $ 724.9 per metric ton.
The average price during September 2017 was up 7% over the previous month at US $ 676 per metric ton.
"This shows that the palm oil market is still growing due to lack of supply from other vegetable oils in the global market.It is estimated that market demand will continue to increase in line with the low soybean production in South America, especially Brazil, because the region is still affected by weather conditions that interfere with crop yields," said Togar.
Meanwhile, domestic palm oil products reached the highest peak in September 2017 of 4 million tons. (imq)