China’s Sunflower Oil Import Will Continue to Decrease in the Second Half
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According to the China customs statistics, in July 2022, China imported 6,918 tons of crude Sunflower Oil, with an import value of $14,642,093 and an average import price of $2,116 per ton. The import volume decreased by 60,757 tons or 90% compared to the same period last year. Compared with June, it increased by 5,428 tons or 364%, and the average import price increased by $588.5, or 39%.
From the perspective of importing provinces and cities, the country’s Sunflower Oil importing provinces and cities were mainly Shanghai, Shandong Province, and Xinjiang Uygur Autonomous Region, accounting for 67.5%, 2.8%, and 26.7%, respectively. Domestic Sunflower seed planting is mainly concentrated in Xinjiang, Gansu, Inner Mongolia, and other regions, and domestic Sunflower Oil is generally self-sufficient in Xinjiang.
Overall, the import volume of domestic Sunflower Oil has increased significantly. The main reason is that Russia has increased the export quota of 400,000 tons of Sunflower Oil, and imports of Russian Sunflower Oil have increased considerably. However, domestic inventories are still tight compared to the import volume in the same period last year.
Chinese Sunflower Oil Market Situation
In the first half of 2022, the consumption of Sunflower Oil showed a weak trend. In terms of packaged Oil, except for a few Oil factories in Xinjiang, where the delivery of goods is acceptable, Oil factories in other regions have slowed down the delivery of goods, and the consumption situation is not good. Domestic small-package Oil profits are generally inverted, and some Sunflower Oil producers have suspended the packaging of Sunflower Oil.
Affected by the high price, the enthusiasm for purchase and sales decreased, the market demand continued to weaken, the downstream willingness to take goods was poor, and the market transaction atmosphere was light. The market was in a situation of tight supply and loose demand, showing weak supply and demand.
In terms of bulk Oil, the price of domestic Sunflower Oil remains at a high level. Oil mills and traders are reluctant to sell. There are no transactions in the market except for some food factories that need a small number of purchases.
The import volume of Sunflower Oil will likely decrease in the second half. According to the market in previous years, the peak season of Sunflower Oil sales is mainly concentrated in the year’s second half. Major Oil mills and traders will focus on stocking up before the Lunar year festival, and the entire edible Oil market will also usher in a peak sales period.
Most small traders have suspended Sunflower Oil-related trade activities and converted to other Oils, and the market demand for Sunflower Oil is even more sluggish. After the price of Sunflower Oil rises, the possibility of consumers choosing other alternatives will increase, of which the highest alternative is Corn Oil.
As of June 30, the domestic first-class Sunflower Oil price was 16,800 yuan/ton, an increase of 4,700 yuan/ton compared with 12,100 yuan/ton at the beginning of the year, a month-on-month increase of 39%, and a year-on-year increase of 13,400 yuan/ton, an increase of 3,400 yuan/ton, a year-on-year increase of 25.4%. According to data from the General Administration of Customs of China, the import volume of Sunflower Oil in China in 2022 would be 1.26 million tons, a year-on-year decrease of 34%.
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