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Weak palm oil prices discourage
imports
KARACHI: Pakistan's palm oil market saw thin demand and lower
prices over the past week and dealers said on Tuesday that no
improvement was likely until international prices had firmed
up. "The market is weak on low demand and buyers are cautious
on weak international prices," said Saulat Khan, a palm oil
importer in the southern port city of Karachi. "The prices
will only improve when China enters into the market."
China, the biggest palm oil importer, said earlier this month
that it would import 2.4 million tonnes of palm oil in 2002,
one million tonnes more than in 2001. Importers normally hold
back orders when prices are low as higher rates bring bigger
margins and better profits.
Khan said most traders had good stocks and were waiting for a
firmer international market to place fresh import orders. He
said booked cargoes of more than 70,000 tonnes of palm oil
were still at sea and would reach Karachi next week. "There
will be not much activity in the market in the coming week.
Importers will take an interest when China starts buying from
March 5," Khan said.
Another trader said importers were evaluating local demand and
current stocks before placing fresh orders and imports were
expected after the first week of March. He said traders were
expecting a price increase of $10-15 per tonne when palm oil
buying from China began. Dealers on Tuesday quoted palm oil on
the local market at 1,360 rupees per maund (37.32 kg), down 10
rupees from the previous week's 1,370 rupees per maund.
Pakistan annually imports about 1.3 million tonnes of edible
oil products, led by palm oil, mostly from Malaysia, to meet a
domestic demand of 1.9 million tonnes.
courtesy Daily The News, 27
February, 2002
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Pakissan.com;
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