Malaysia's February palm oil exports, stocks hit lows

Spanish Market: Agriculture, Biofuels, Chemicals
11/03/24

Malaysian palm oil exports fell to a three-year low in February, along with lower production and a drop in stocks to a seven-month low.

Palm oil exports fell by 25pc on the month to 1.02mn t in February, the lowest level since February 2021, according to the Malaysian Palm Oil Board (MPOB). Purchases from price-sensitive countries have fallen as the price discount for palm oil has narrowed compared with rival soft vegetable oils. Average crude palm oil prices delivered to Indian ports rose to $911/t cif in January from $883/t cif in December 2023, while crude soybean oil prices fell to $939/t cif from $976/t cif over the same period, according to the Solvent Extractors' Association of India.

Malaysian palm oil inventories also dropped by 5pc on the month to a seven-month low of 1.92mn t in February, falling below the 2mn t threshold for the first time since July 2023, MPOB data show. Market participants look to Malaysia's monthly palm oil stock levels as a gauge for price direction. Malaysia is the world's second-biggest palm oil producer.

A drop in production contributed to the export and stock declines. Crude palm oil (CPO) production fell by 10pc on the month to 1.26mn t in February, although output was stable from a year earlier. The month-on-month decline was mainly driven by lower production in the east Malaysian states of Sabah and Sarawak, which are the country's largest palm oil producers. Output fell by nearly 15pc each in Sabah and Sarawak from January to 291,000t and 276,000t respectively.

Palm kernel production fell by 12pc on the month to 302,000t in February, while output of crude palm kernel oil fell by 14pc to 139,000t, the MPOB said.

Tight palm oil supplies will likely support palm oil prices at relatively high levels over the next three months, analysts forecast last week.

Malaysian exports of biodiesel also fell by 28pc on the month to 29,400t in February. Outbound trade of oleochemicals rose to 255,000t, 1pc higher from January, but palm kernel oil exports fell by 19pc on the month to 55,600t in February.

By Lauren Moffitt

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

09/05/24

Brazil's 3tentos cuts soy crop outlook amid floods

Sao Paulo, 9 May (Argus) — Brazilian agribusiness company 3tentos cut its soybean crop outlook for this season because of the floods ravaging southern Rio Grande do Sul state. An important part of 3tentos' operations is headquartered in Rio Grande do Sul, the second-largest soybean producer in the country, which has been facing heavy rainfall since 29 April that has killed 107 people, according to the state's civil defense. As a result, Rio Grande do Su's soybean crop may drop to 20mn-21mn metric tonnes (t) from 23mn-24mn t previously predicted, according to 3tentos' chief executive Luis Osorio Dumoncel. At least 80pc of soybeans harvested this year are stored in warehouses or ports. "We have been working tirelessly to maintain all operations in the supply of inputs, grains, feed and biofuels," he said during a quarterly earnings call. The company sees a "tiny risk" to its supply chains of pesticides, seeds and fertilizers because of the floods. On the logistics side, alternative export routes have also been used to ship products such as soybean meal, chief operating officer Joao Marcelo Dumoncel said. 1Q results 3tentos' first quarter sales reached R2.68bn ($520mn), a 48.5pc hike from the same period a year earlier, driven by the industry, biodiesel and soybean meal segments. The industry segment, the firm's largest, accounted for R1.52bn in sales, rising by 69pc year-over-year. Soybean meal and other products' revenues totaled R927.6mn, 72pc higher than in the first quarter in 2023. Biodiesel sales increased by 64pc to R591mn, thanks to the increase in biofuel blending mandate to 14pc from 12pc since March. "We are confident that the biodiesel operation will help the company's margin this year," Dumoncel said. The firm's soybean crushing margins rose by 3.3pc in the quarter, settling at R442/t, driven by biodiesel production. 3tentos' grain sales grew by almost 27pc to R560mn. Revenues in the agriculture feedstocks segment — such as fertilizers, pesticides and seeds — reached R601mn in the first quarter, up by 35pc from a year prior. The company's first quarter income totaled R156.44mn, a 51pc increase from the same period last year. 3tentos also started to build its first corn crushing unit to produce ethanol and dried distillers' grain (DDG). The company completed the issuance of debt securities worth R560.73mn this week. By Alexandre Melo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Vertex to pause Mobile renewable fuels refining

09/05/24

Vertex to pause Mobile renewable fuels refining

Houston, 9 May (Argus) — US specialty refiner Vertex plans to pause renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery by the end of the year, returning a converted hydrocracker to produce what it says are wider-margin fossil fuel products. Vertex completed the conversion of the Mobile refinery and produced its first barrels of renewable diesel (RD) in May last year , having bought the refinery from Shell in 2022 . The company plans to use a third quarter turnaround to convert its renewable hydrocracker back to petroleum fuels production and to be up and running by the end of the year, after facing significant macro headwinds for renewable fuels, the company said on an earnings call today. The decision to return to full fossil fuels production is ultimately a near-term financial decision for the company which has an outstanding $196mn term loan, management said on an earnings call Thursday. The time line for a return to petroleum product production is contingent on permitting approvals and a successful completion of the turnaround and catalyst change in the unit. Vertex plans to sell its renewable feedstock inventories prior to the conversion. Vertex said it will retain the flexibility to return to renewable fuels processing should market conditions improve for the fuels, but does not believe headwinds to renewable markets will abate in at least the next year and a half. Conventional crude and other feedstock throughputs at the Mobile refinery were 64,000 b/d in the first quarter, down from 71,000 b/d in the same three months of 2023. Renewable throughputs were 4,000 b/d in the most recent quarter. The company expects 68,000-72,000 b/d of conventional crude and other feedstock throughputs in the second quarter and 2,000-4,000 b/d of renewable throughputs. Vertex reported a first quarter loss of $18mn compared to profits of $54mn in the first quarter of 2023. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Produção de veículos aumenta em abril

08/05/24

Produção de veículos aumenta em abril

Sao Paulo, 8 May (Argus) — A produção brasileira de veículos subiu 24pc em abril, em um cenário de vendas crescentes no mercado interno. A produção de veículos atingiu 222.115 unidades em abril, em comparação com 178.853 no mesmo mês em 2023, informou a Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea). Em relação a março, a produção cresceu 13pc. No acumulado desde janeiro, houve alta de 6,3pc, para 760.114 unidades. Já as vendas saltaram 37pc em comparação com o mesmo período do ano anterior. O licenciamento de veículos totalizou 220.840 unidades no mês, 17pc maior do que em março. O Brasil exportou cerca de 27.330 unidades em abril, queda de 19pc na base anual e alta de 16pc em relação ao mês anterior. "Temos pela frente alguns pontos de alerta, como a redução do ritmo de queda dos juros e os efeitos da calamidade no Rio Grande do Sul", disse o presidente da Anfavea, Márcio de Lima Leite. Leite acrescentou que as enchentes no estado já estão afetando fábricas de veículos, máquinas agrícolas e componentes usados por toda a cadeia automotiva. As chuvas já deixaram mais de 100 mortos, segundo a Defesa Civil do Rio Grande do Sul. Outras 128 pessoas estão desaparecidas e cerca de 164.000 perderam suas casas. Por Laura Guedes Participação de mercado de veículos leves por combustível % Abr-24 Abr-23 ± (pp) Gasolina 3,6 2,5 1,1 Elétricos 3,2 0,4 2,8 Híbridos 2,3 2,1 0,2 Híbridos Plug-in 1,7 0,7 1 Flex 79,5 83,4 3,9 Diesel 9,6 10,9 -1,3 Anfavea Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Enchentes afetam operações de empresas no Sul do Brasil

08/05/24

Enchentes afetam operações de empresas no Sul do Brasil

Sao Paulo, 8 May (Argus) — Diversas empresas brasileiras suspenderam operações no Rio Grande do Sul em razão das chuvas intensas que causaram diversos alagamentos e danos à infraestrutura. As enchentes ocasionadas pelo recorde de chuvas geraram pelo menos 83 mortes e 111 pessoas desaparecidas, de acordo com o governo estadual. Mais de 23.000 pessoas foram obrigadas a deixarem suas casas em meio a danos generalizados, incluindo pontes e rodovias inundadas em diversas cidades. A barragem da usina hidrelétrica 14 de Julho, com capacidade de 100MW, no rio das Antas, rompeu na semana passada em meio às fortes chuvas. A Companhia Energética Rio das Antas (Ceran), que opera a usina, implementou um plano de evacuação de emergência em 1 de maio. A produtora de aço Gerdau informou em 6 de maio que suspendeu suas operações em duas unidades no estado até que seja assegurada a "segurança e proteção das pessoas". A empresa não divulgou o volume de produção de aço dessas unidades. A empresa de logística Rumo interrompeu parcialmente suas operações e informou que os "danos aos ativos ainda estão sendo devidamente mensurados". A gigante petroquímica Braskem desligou duas unidades no complexo petroquímico Triunfo, como uma medida de prevenção em decorrência dos "eventos climáticos extremos" no estado, afirmou em 3 de maio. A empresa adicionou que não há expectativa de data para retomar as atividades. A Braskem opera oito unidades industriais no Rio Grande do Sul, que produzem 5 milhões de toneladas (t)/ano de petroquímicos básicos, polietileno e polipropileno, de acordo com seu website. Por Carolina Pulice Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Japanese ethylene producers unite for decarbonization

08/05/24

Japanese ethylene producers unite for decarbonization

Tokyo, 8 May (Argus) — Japanese petrochemical producers Mitsui Chemicals, Mitsubishi Chemical and Asahi Kasei have agreed to co-operate on decarbonization of their ethylene crackers in west Japan, targeting to decide a pathway within the current April 2024-March 2025 fiscal year. They plan to accelerate carbon neutrality at Mitsubishi Chemical and Asahi Kasei's 496,000 t/yr Mizushima cracker in Okayama prefecture and Mitsui Chemicals' 455,000 t/yr Osaka cracker in Osaka prefecture. The partners aim to introduce biomass feedstocks such as biomass-based naphtha and bioethanol and low-carbon cracking fuels like ammonia, hydrogen and electricity. They said joining forces will enable them to accelerate reducing greenhouse gas emissions, although they have not yet decided any further details. Mitsui Chemicals has experience in using bio-naphtha and recycled pyrolysis oil at its Osaka cracker. Japanese petrochemical producers have increasingly united to achieve decarbonization of their production processes, which account for around 10pc of the Japanese industrial sector's carbon dioxide emissions, according to the trade and industry ministry. Mitsui Chemicals, Sumitomo Chemical and Maruzen Petrochemical agreed to study the feasibility of chemical recycling and using bio-feedstocks at the Keiyo industrial complex in Chiba. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more