Rising use of cheaper alternatives expected to dampen Chinese palm oil demand this year
China is expected to reduce palm oil imports this year as cheaper canola and soybean options become available. This shift follows new trade deals with Canada.
China
CN is expected to see a decline in palm oil demand this year as the nation shifts its purchasing focus toward more affordable canola and soybean alternatives. This transition, enabled by a recent trade deal with Canada
CA and increased canola imports from Australia
AU, is being further supported by higher soybean imports and a surge in domestic crushing activity. This shift reduces palm oil import volumes as buyers move away from traditional vegetable oils in favor of cheaper options.
According to data from the Malaysian Palm Oil Board (MPOB), the impact of this changing demand is already visible in trade statistics. Last year, Malaysian palm oil exports to China fell by 35.7%, a significant drop that highlights the shifting dynamics in the global edible oil market. Anilkumar Bagani, an analyst with the Sunvin Group, has noted these changing patterns as palm oil traders and analysts monitor the competition between different oilseeds.











