Strong price lifts RI’s CPO export

Wed, 07/06/2011 - 08:38

Despite lower export volume, Indonesia’s CPO export value in the first quarter of this year increased by 46 percent to US$3.90 million from $2.67 million in the same period of last year, thanks to higher prices during the period, Executive Director of the Indonesian Palm Oil Association (Gapki), Fadhil Hasan said in a statement.

 

Export volume in the first quarter of this year fell to 3.2 million tons compared to 3.6 million tons in the same quarter of 2010, he said.

 

Fadhil said that CPO prices in the first quarter of this year were higher than the prices in the same period of last year.  The highest price level occurred in March at an average price of $1,303 per ton, and fell to $1,213 per ton, and $1,146 per ton in May.  Despite the recent decline, the CPO price was still higher than the level in the same period of last year.

 

“The decline in price is probably due to the decline in the price of fossil oil, and interest rate.  Lower demand for CPO also caused the price to decline,” Fadhil said as quoted by Investor Daily on Wednesday.

 

India is Indonesia’s largest CPO export market, followed by the EU, China and Bangladesh.  Last year, India imported 5.74 million tons of CPO from Indonesia.  The EU imported 3.7 million tons, China 2.4 million tons, and Bangladesh 0.63 million tons.

 

In April of this year, however, the EU has started to takeover India’s position as the largest market.  In January of 2011, the Indian market accounted for about 27 percent of Indonesia’s total CPO export, compared to EU’s 25 percent.  But in April of this year, EU’s share rose to 30 percent, while India’s declined to 23 percent. (rei)

 

 

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