Palm oil imports hit all-time high, and ramen and cosmetics prices soar

Over $1,400 per ton… doubling in 2 years
Last month, the price of imported palm oil in Korea reached an all-time high of over $1,400 per ton. The price of consumer goods such as ramen, sweets, and cosmetics that use palm oil as an essential ingredient is also expected to rise. Indonesia, the world’s largest exporter of palm oil, announced that it would stop exporting palm oil and raw materials from the 28th, raising concerns that prices may rise further and domestic supply shortages may arise.

According to the Korea Customs Service on the 26th, the amount of palm oil imported last month was 62,192 tons, and the import amount was 90.38 million dollars. The import price per ton was $ 1,453, the highest since January 2000 when statistics began to be compiled. This is the first time that the import price per ton has exceeded 1,400 dollars. It has nearly doubled from two years ago, when the novel coronavirus infection (COVID-19) was initially spread.

The reason the price of imported palm oil has soared is that the demand for cooking oil is increasing after Corona 19, but supply is being disrupted due to the prolonged Russian invasion of Ukraine. Sunflower seed oil, which is a representative edible oil along with palm oil, is mainly produced in Russia and Ukraine. As the war caused a supply problem, the demand for edible oil was concentrated on Indonesian palm oil. The Indonesian government is planning to ban all exports of palm oil from the 28th of this month as the supply and demand of palm oil becomes unstable. Indonesian palm oil accounted for 56.7% of domestic palm oil imports as of last month.

Food companies usually stock up for three to four months of palm oil, so the price of processed food is unlikely to rise in the short term, but if the Ukraine crisis continues, the price increase is expected to be unavoidable. If Indonesia’s export suspension is prolonged, a supply shortage may arise in Korea.

Sejong = Reporter Kim Hyung-min kalssam35@donga.com