But whether it is used or not depends on its price competitiveness against soft oils like soybean oil and rapeseed oil. There are also certain applications where the three vegetable oils are substitutable for each other; as such, users do not hesitate to make a switch whenever the price is not attractive.
As a result of tighter CPO supply last year, the supply-demand gap for palm oil had to be partially bridged by utilising available stocks in the country. The stock level dropped from over 1 million tonnes in January to 428,000 tonnes as at Dec 30. The price of RBD palm olein moved up from RMB4,560/tonne to RMB6,700/tonne over this period (Figure 4).