MARKET DEVELOPMENT
Asia Pacific CPO Plantation Companies Face Potential Slowdown: Fitch
Asia Pacific CPO Plantation Companies Face Potential Slowdown: Fitch
12/09/2013 (Jakarta Post) - Fitch Ratings said crude palm oil (CPO) plantation companies in Asia are facing potentially slower demand from the two largest import markets, China and India, with performance over the next 12 to 18 months likely to be subject to the worst of the decline.
In a new report published today, CPO plantation companies in Malaysia and Indonesia had, during the first half of 2013, managed to liquidate their inventory and improve export volumes.
Prices remained low despite improving to between US$840 and $860 per ton in the first half of 2013 from a low of $776 in December 2012.
Low prices have also served to depress CPO export realization in Malaysia at $743 per ton in the first half of 2013, down from $993 per ton in the same period of 2012.
“Despite some deterioration in the average selling price and operating profit per ton, CPO plantation companies' funds from operations [FFO]-adjusted net leverage remains compatible with their rating levels,” Fitch said in an official release made available to The Jakarta Post on Wednesday.
In a new report published today, CPO plantation companies in Malaysia and Indonesia had, during the first half of 2013, managed to liquidate their inventory and improve export volumes.
Prices remained low despite improving to between US$840 and $860 per ton in the first half of 2013 from a low of $776 in December 2012.
Low prices have also served to depress CPO export realization in Malaysia at $743 per ton in the first half of 2013, down from $993 per ton in the same period of 2012.
“Despite some deterioration in the average selling price and operating profit per ton, CPO plantation companies' funds from operations [FFO]-adjusted net leverage remains compatible with their rating levels,” Fitch said in an official release made available to The Jakarta Post on Wednesday.