MARKET REVIEW OF COCONUT OIL
Price of coconut oil in Rotterdam showed an easing trend in the first quarter of 2020. The price in January 2020 was USD1,062/MT and declined to USD840/MT in April 2020. However, price of coconut oil in April 2020 was still 25% higher than a year ago. Expected tightening supplies and relatively strong in demand support the price of coconut oil.
As price of coconut oil dropped, Philippines boosted their export of coconut oil. In the period of January-December 2019, Philippines shipped 1,239,326 MT of coconut oil to the global market. The export volume was 30% higher than the previous year’s volume for the same period. The export volume was also the highest over last decade. Philippines records an increase in export in last two consecutive years and most likely to again increase in 2019 gaining from low price of the oil. Philippine Statistics Authority reported that during the period of January-December 2019, Philippines mainly sent its coconut oil to European countries and US. 51% of the total export was sent to Europe and 28% was shipped to US. Malaysia, Indonesia, China, and Japan were other main destinations of coconut oil from Philippines. The four countries each imported 117 thousand MT, 49 thousand MT, 41 thousand MT and 33 Thousand MT respectively during January-December 2019.
After experiencing a drop in export volume for three consecutive years from 2015 to 2017 and then regained in 2018 by an increase of 32% in its export volume, Indonesia again suffered anexport setback for coconut oil during the period of January-December 2019. Indonesia shipped 610,812 MT of coconut oil to the global market during the period of January-December 2019 which was recorded 9.5% lower than the previous year’s export volume for the same period. Coconut oil from Indonesia seems hardly to compete with the oil coming from Philippines. During the period, major markets for Indonesian coconut oil were Malaysia, China, United States, Netherlands, and South Korea. Export volume to these five countries constituted for more than 80% of the total export.
Taking advantage from lower prices and higher production, global demand for coconut oil strengthened in 2019. Global import of coconut oil in 2019 was 2.04 million MT which rose by 6%compared to previous year’s imports. Imports of coconut oil by US, the largest importing country, during January-December 2019 was 0.471 million MT which lowered by 2% opposed to the previous year’s volume. Total imports of lauric oils by US decreased in 2019 to 0.814 million MT which 58% of it was coconut oil. Meanwhile European countries imported 0.657 million MT of coconut oil during the same period which was 5% higher compared the previous year’s volume. In total, European countries brought 1.338 million MT of lauric oils in 2019 which was lower than previous year’s volume of 1.347 million MT. Netherlands was the main importing countries from Europe.
Asia, Malaysia and China were recorded as the main importing countires for the oil. Malaysia imported 0.224million MTand China brought in 0.172million MT of the oil. Other Asian countries which had a significant demand for coconut oil were South Korea, and Japan.