Domestic buyers should stock up before the implementation of the new soybean oil regulations

Introduction: Beijing, Aug 11: according to analysts, the Chinese government will implement stricter regulations on the import of edible oil in October Before that, importers will actively purchase soybean oil, so the demand for freighters in September will be greatly increased, which is undoubtedly good news for shipowners The Chinese government will require crude soybean oil to meet the quality standards for refining imported soybean oil The new regulations will be implemented from October 1 Analysts believe that the government's move is to protect the domestic soybean crushing industry In the past month, the price of domestic soybean oil rose by 5.6%, which is now about 6550 yuan (791 US dollars) per ton With the implementation of the new regulations, domestic oil companies may squeeze more soybean oil But the Chinese government says the regulation aims to improve domestic food quality standards However, considering that the current processing level of Brazil and Argentina is not up to these standards, the new regulations may cause problems in soybean oil import As Brazil exported 419900 tons of soybean oil to China in 2003, Argentina exported 958200 tons of soybean oil to China The market is worried that the soybean oil market may be short of supply after the implementation of the new regulations After the implementation of the new import regulations, Brazilian and Argentine manufacturers need to solve some technical problems to improve the quality of soybean oil, said an analyst in Beijing It's hard to know how this rule will affect the market until the government gives more details about the quality inspection standards As importers expect a possible shortage of soybean oil in the country, they are trying to stock up in case of supply problems Brokers at Clarksons shipping in London say the current situation is very favorable and Brazil has recently exported a lot of soybean oil According to trade data, soybean oil exports in July have reached the highest level in the year, which is the second highest level in Brazil's soybean oil export history Another analyst in London agreed He said China's soybean oil demand was weak at the beginning of the year, but given Brazil's export level in June, it is clear that China has started to import soybean oil on a large scale In the first half of this year, despite disputes over soybean imports between China and Pakistan, China imported 1.4 million tons of soybean oil, with a total value of $850 million Given the contamination of Brazil's soybeans at the beginning of the year, Chinese importers are likely to stockpile large quantities of soyoil in the near future This is good news for the shipping industry The demand for freighters is expected to increase in September But analysts warn that many importers must be very careful when importing soyoil, because it must arrive before the new rules come into effect, or it may be refused entry The product that can replace the imported soybean oil is palm oil According to data released by the General Administration of Customs of China, China imported 386496 tons of palm oil in June, an increase of 28.9% over the same period last year From January to June this year, the total import volume was 1726502 tons, an increase of 21.5% year on year, most of which came from Malaysia