October 25, 2004
China's Soyoil Imports To Slow In 2004-05
China's soyoil demand in the 2004-05 crop year is expected to rise, but soyoil imports are expected to slow, an official at the China National Grain and Oils Information Center said Friday.
Domestic soyoil consumption is expected to total 6.9 million metric tons in 2004-05, up from 6.14 million tons in 2003-04, according to Cao Zhi, an official at CNGOIC, a research unit affiliated with the State Grain Bureau.
Domestic production is expected to rise to 4.73 million tons in the 2004-05 crop year, from 4.29 million tons in the previous crop year, the official said.
Despite expected rises in soyoil consumption because of unceasing economic development, CNGOIC expects soyoil imports in 2004-05 to slow to 2 million tons from 2.72 million tons in 2003-04.
Cao didn't provide a direct explanation for the expected slowdown in soyoil imports but said newly promulgated standards for imported soyoil "will have an impact on the industry".
He said dissolvant residues in soyoil imported from Brazil and Argentina now surpass 300 milligrams per kilogram, and China's new standard on this calls for less than 100 milligrams/kg.
Some analysts said because of the tough new standards, some traders rushed to importsoyoil before the new standards took effect Oct. 1 this year.
In the first nine months, China imported 2,044,025 tons of soyoil, up 70.6% over the same period last year, according to figures from customs.
Of the amount, imports from Argentina totaled 1,354,663 tons, up 65.1% on year, while imports from Brazil totaled 689,088 tons, up 144.4%.