11 March 2002 (Business Times) - PROSPECTS of palm oil exports in Chinaimproved further with the country’s entry into the World TradeOrganisation (WTO) but the republic’s climate may cap China’s intake ofthe commodity.LMC International Ltd managing director Dr James Fry said palm oilconsumption cannot increase substantially as refined bleached anddeodorised (RBD) super olein can only be used as a liquid oil in hotclimates.“At the temperatures found in much of China, it becomes cloudy and localconsumers suspect adulteration,” he said in his working paper presented atthe 13th annual palm and lauric oils conference and exhibition last week.The combined direct and indirect imports of all edible oils should rise tonew heights but palm oil’s share is unlikely to increase and expect toremain in the region of 2 million tonnes this year, he added.He noted that China’s formal entry into the WTO last December 12 not onlybenefits palm oil but all edible oils in general.LMC International Ltd managing director Dr James Dr Fry said China’sconsumption of vegetable oils more than trebled from 5.9 million tonnes in1985 to 18.5 million tonnes last year.“By next year, imports of three main oils namely soyabean, palm oil andrapeseed into China could exceed 6 million tonnes,” Fry said. in a workingpaper presented at the 13th annual palm and lauric oils conference andexhibition last week.He added that in North China, palm oil is restricted to uses in frying andas a hard fat.“It already dominates the instant noodle market but in many otherapplications often has to compete with plentiful animal fats.”However, Fry said the outlook for vegetable oil prices will ultimately bedetermined by the overall interaction between production and consumptionworldwide.