Total exports of palm oil methyl ester (PME) from Malaysia and Indonesia hit an eight-month high in July, largely supported by seasonal demand from Europe and a wider spread between palm oil and gas oil prices.
Citing cargo surveyor AmSpec, global energy and commodity market business intelligence provider Argus Media on Monday (Aug 1) said PME shipments totalled 38,475 tonnes in July, the highest since November last year.
It said this included 21,975 tonnes of PME shipped from Pelintung, Indonesia to the Americas.
It said the July shipment surpassed the previous high of 20,085 tonnes that went to the Americas last August, which was also the last time that PME was shipped to the Americas from Indonesia.
The remaining 16,500 tonnes was shipped from Pasir Gudang, Malaysia to Asia Oceania and Europe, which took 1,200 tonnes and 15,300 tonnes respectively.
Argus said this rise in popularity of PME can be attributed to the spread between palm oil and gasoil prices falling to a record low of US$246/tonne on July 15, coupled with a seasonal rise in demand from Europe that led to a 53% month-on-month rise in shipments to the region last month.
Source: The Edge Markets