27/01/2015 (Bernama) - Malaysian palm oil products fell 17.7 per cent from Jan 1-25, 2015 vis-a-vis Dec 1-25 last year on poor demand from the biggest consuming countries.

According to cargo surveyor Intertek Testing Services, export volume fell to 886,189 tonnes from 1.077 million tonnes in the previous month.

Phillip Futures Sdn Bhd Senior Derivatives Product Specialist David Ng attributed it to weaker demand from China during the winter season, and India owing to lesser restocking activities as local supply was sufficient to meet its needs.

"We also noticed that biodiesel demand from Europe has dropped significantly due to cheaper global crude oil," he told Bernama.

Earlier this month, it was reported that the Malaysian Palm Oil Board had spent RM340 million to build 35 petroleum depots nationwide to blend biodiesel.

The board has also begun a study on biodiesel B10 compatibility via the implementation of the palm oil biodiesel incentive scheme with the industry players to boost the use of palm oil biodiesel in industrial sectors.