17 January 2013 05:52 [Source: ICIS news]
SINGAPORE (ICIS)--Palm oil freight rates are expected to increase in February as Malaysia allows duty-free crude palm oil (CPO) exports for the second consecutive month, market sources said on Thursday.
With Malaysia having set its export tax for CPO at 0% for February, unchanged from January, market sources said regional freight rates are likely to increase in February as exports to India and China will rise.
Malaysia is the second largest palm oil producer in the world after Indonesia, while India and China are the world's two largest importers of palm oil.
“Expect a surge [in prices] in the palm oil market in February, because of increased shipments,” an Asia-based charterer said.
Prices are expected to be stable-to-firm in end-January before heading on an uptrend in the first week of February.
“Palm oil prices will go up by at least $2.00-3.00/tonne (€1.50-2.25/tonne) from February [onwards], because of the tax structure [in Malaysia],” a shipowner in Asia said.
Palm oil freight rates from southeast Asia to India for a 10,000 tonne vessel were assessed at $43.00-47.00/tonne for the week ended 11 January.
($1 = €0.75)
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