Source: MPOB

Imports of Malaysian palm oil by the Middle East region registered a volume of 209,296 MT, which is 2,541 MT or 1.23% higher compared to the same period of 2023. Turkiye is the leading importer of Malaysian palm oil in this region with a volume of 81,012 MT.  The country has recorded 12.96% drop in imports of Malaysian palm oil.    Higher import of palm oil in the last quarter of 2023 affected January 2024 imports.  However, it is expected that the intake in February and March to be higher, to facilitate higher demand as observed the upcoming major Muslim festivals.

Imports of MPO to Iran in January 2024 increased by 32.38% or 15,788 MT compared to last year to a total of 64,548 MT. Iran is the second largest MPO importer in the region for January 2024. Saudi came third with a total import of 35,278 MT and the volume recorded an increase of 52.96% or 12,215 MT y-o-y. The growth is to supplement higher demand from the domestic HORECA sector, due the growing number of tourists and the Umrah pilgrimage in the recent month.

Regional conflicts and political uncertainty in the region, as a result of the Palestine-Israel conflict and the Houthi movement in Yemen lead to panic buying from importers. Some of the cargo ships are diverted to Dammam Port instead of Jeddah and Yanbu Port, which incur higher shipping costs.

The UAE imported 7,432 MT of Malaysian palm oil and the volume is slightly higher than the corresponding period of last year. Demand for Indonesian palm oil (IPO) in the market is growing as IPO is being offered at a discounted price to MPO.

Other countries that recorded an increase were Qatar (71.72%), Iraq (135.79%), Kuwait (57.90%) and Bahrain (23.14%). While countries that registered a drop in imports of MPO were Yemen (59.56%), Oman (77.39%), Jordan (58.00%), Lebanon (11.91%) and Syria (95.10%).