Malaysia palm oil exports to China down almost 29% through October
27/11/2025 (The Star Online), Kuala Lumpur - Malaysia’s palm oil exports to China fell by almost 29% in the first 10 months of 2025, the country's plantation and commodities minister said on Thursday.
The decline indicates deeper challenges relating not only to competitiveness and logistics, but also to pricing dynamics and market positioning, Datuk Seri Johari Abdul Ghani said in his opening speech at an industry dialogue.
Malaysia’s palm oil exports to China totalled 1.39 million metric tons last year, down 5.3% from a year earlier.
Johari said the decline was attributable to higher prices for palm oil compared with soybean oil.
"As soybean oil is also imported as an edible oil for consumption and industrial use in China, buyers opted for the cheaper alternative ... This is not about geopolitics," he said later at a press conference.
Palm oil tracks the price movements of rival edible oils, including soybean oil, as it competes for a share of the global vegetable oils market.
Malaysia's crude palm oil futures on the Bursa Malaysia Derivatives Exchange were trading at RM4,060 per tonne on Thursday.
Johari suggested that China buyers should engage directly with major palm oil producers in Malaysia, noting that buyers who commit to one-year purchase agreements may be eligible for discounts.
Johari said he expects palm prices to remain above 4,000 ringgit per metric ton by the end of the year and is optimistic about palm oil exports to China next year, adding that he believes the palm-soybean price spread would be normalised. – Reuters