BEIJING, July 28 (Bernama) -- The first Malaysia-China palm oil trade fair and seminar ended on a bullish note here Friday with traders from both sides welcoming the networking opportunity and getting the latest developments from Malaysia, the world's largest producer of the commodity.

The two-day event, officiated at by Plantation Industries and Commodities Minister, Datuk Chin Fah Kui, was attended by some 450 participants including major Malaysian suppliers and the Malaysian Palm Oil Board (MPOB), which highlighted the viability of palm oil-based biodiesel.

Several traders said they expected a continued upside for palm oil and new opportunities for investments in both upstream and downstream industries.

"I think the price of crude palm oil will go up... already the September price is going for US$484 (US$1=RM3.64) per tonne. It was a good opportunity to meet up with other traders and suppliers and to hear of the latest developments," said Zhang Shimin, deputy general of Guangzhou-based South China Oils and Fats Industrial Co Ltd.

The company imports 500,000 tonnes annually from Malaysia to be refined into cooking oil.

Another trader from Tianjin said the fair gave smaller players a link to a bigger network of suppliers and technology.

"I think many Chinese companies now will consider boosting investments, including going to Malaysia to start plantations to support their downstream activities in China.

"The cost upstream to produce the palm oil is not so high," said Wu Dong from Northsea Oils and Grains Industries (Tianjin) Co Ltd.

Wu also expected crude palm oil price to be stable, if not higher, in the second half of the year because of the attractiveness of palm oil for biodiesel.

Malaysian trader, Martin Charles, of Global Commodities (M) Sdn Bhd, said with the uptrend, the market currently favoured suppliers than buyers.

"It is a suppliers' market. Some traders are seeking stocks to cover for the third quarter of the year," he said.

Lin Hua Ming of Fujian New Century Trade and Development Co Ltd said although he did not make any deals he now has a list of suppliers and traders to do business with in the future.

Many locals here showed keen interests in the technology of producing biodiesel at a session by Dr Cheah Kien Yoo of MPOB who spoke on the properties of biodiesel and its potential for China.

MPOB has licensed two Malaysian engineering firms to build and sell palm biodiesel plants, Lipochem (M) Sdn Bhd for normal (summer) grade and Olitek Sdn Bhd for winter grade palm biodiesel.

Chin said due to the overwhelming response, MPOB would consider organising one seminar every two years.

-- BERNAMA