Climate and Regulatory Impact – (2024)
Heavy rains in Malaysia and drought conditions in Indonesia reduced fresh fruit bunch yields, affecting crude palm oil availability and refining throughput. Sustainability certification demands and stricter EU traceability regulations limited export volumes to Europe, tightening global supplies and contributing to further price increases.
Feedstock & Logistic Disruptions – (2023)
Extreme weather events in Southeast Asia, port congestion, and fluctuating crude palm oil (CPO) prices strained supply chains. Freight costs surged due to limited vessel availability. Meanwhile, high global inflation and tightening inventories in major importing nations like India and Bangladesh kept Palm Olein prices elevated.
Russia-Ukraine War – (2022)
The war disrupted sunflower oil exports, prompting many countries to substitute with palm-based oils. Palm Olein saw heightened demand, especially in Europe and the Middle East. Concurrent increases in energy, fertilizer, and transport costs further inflated production and distribution expenses, fuelling upward price pressure.
Post-COVID Demand Recovery – (2021)
As economies reopened, demand for Palm Olein surged, especially in foodservice, instant noodle manufacturing, and snack processing. Increased exports to India, China, and Africa tightened global supplies. Labor shortages in Malaysia and Indonesia hindered output recovery, pushing prices higher amid strong restocking by importers.
The COVID-19 Pandemic – (2020)
Global lockdowns and labour shortages disrupted oil palm harvesting and refining activities, including Palm Olein production. Restrictions on transportation and port operations led to delayed shipments. While retail cooking oil demand remained stable in some regions, bulk industrial usage dropped temporarily, causing price volatility due to uneven consumption patterns.