THIS IS WHAT PALM OIL ISSUERS SAY ABOUT THE DECLINE IN CPO DEMAND FROM CHINA
18 February 2020
Bisnis.com, JAKARTA - The corona virus outbreak that hit China has spread to various sectors. Two palm oil issuers have reported that demand for crude palm oil (CPO) from China has fallen since the corona virus outbreak.
Corporate Secretary of PT Mahkota Group Tbk (MGRO) Elvi said that her party had predicted a decrease in demand for CPO from China since the corona virus outbreak spread in Hubei Province. He added, China is one of the large market shares for the company even though exports are not carried out directly.
“China's market share was indeed the largest share of CPO exports in 2019. Our prediction is that exports to the country will tend to continue to decline in connection with the coronavirus epidemic that occurred in early 2020,” Elvi explained to Bisnis.com, Tuesday (11/2/2020).
The decline in CPO demand was also recognized by PT Dharma Satya Nusantara Tbk (DSNG). DSNG Director Jenti Widjaja said that slowing economic activity along with the spread of the coronavirus outbreak has had an impact on CPO demand. However, he believes that CPO demand will return to normal if the coronavirus outbreak can subside.
On the other hand, Jenti believes that the current CPO price trend is relatively stable, supported by the B30 program. This program requires the mixing of 30 percent biodiesel with 70 percent diesel fuel. H
“Currently, the price is relatively good to stay above, because the B30 program is running and the tendency of supply is decreasing,” he concluded.