POINTERS: Changes of Oils & Fats S&D in China Under the Background of Easing US - China Trade Tension and African Swine Fever Outbreak

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Questions & Answers (8) :

Anthony Yap

4 years ago

African Swine Fever; no more incident happened? 非洲猪瘟是否已经得到控制和正式结束了？哪一个省市已经恢复了正常供应？

POINTERS SECRETARIAT:
Posted on behalf of Cai Neng Bin : African swine fever outbreak has been effectively controlled, the closure of farms involved in the outbreak and opening of new farms have been effectively implemented under the guidance of the government, and the number of sows that can be bred has also begun to rise. Because of the outbreak started in the north, the region has started to recover earlier, while the outbreak time in the south started later, so the recovery is slower, but the whole country is gradually recovering.
4 years ago

Anthony Yap

4 years ago

How the Government going to protect local farmers’ interest as expected influx of supply of commodities after USA –China signed off the Phase 1 trade agreement. 中美贸易战签署第一阶段的协议过后，中国会大量进口美国的大豆，事后政府该如何保护当地农民的利益？

Cai Neng Bin:
Since the soybean crushed in China are mainly imported, the signing of the Sino-US trade agreement will increase the import of soybeans. The Chinese government hopes to purchase soybeans through market pricing and reduce the burden of government intervention on enterprises. China's domestic soybeans are mainly used for food. The government ensures the basic income level of farmers by giving subsidies, which has little to do with the lack of imports.
4 years ago

Anthony Yap

4 years ago

How frequent the State Reserve rotate the soybean? How the programme of rotation conducted since market current is soft due to Covid-19? 国家储备的大豆的轮换次数,在一年里有多少次？市场因新型冠状病毒而受到影响，大豆的价格受影响而低廉，轮换的项目该如何进行？

POINTERS SECRETARIAT:
Posted on behalf of Cai Neng Bin : The rotation of national reserves is classified information in terms of quantity and time, and the market unable to estimate these information. The only thing is through tracking the auction activities to track temporary reserves.
4 years ago

Tey Poh Leng

4 years ago

When you expect the Covid 19 in Hubei Province to be contained?

Cai Neng Bin:
China's Covid-19 epidemic has been effectively controlled in mid-February, with the number of new cases decreasing, especially the rapid decline in the number of confirmed and suspected cases.
4 years ago

Tey Poh Leng

4 years ago

Page 2: Increase of amount purchase of soybean for state reserve; What is the estimated quantity to be imported?

Cai Neng Bin:
Last year, China has negotiated to import some US soybeans. This year, more enterprises are encouraged to apply for quota for the import of US soybean which is exempted from additional tariff. As there will be ongoing assessment on the purchasing situation of US soybeans and China's demand, hence the specific total import volume is unknown.
4 years ago

Fatah

4 years ago

China is embarking on environmental policies. In terms of fossil fuel usage, is there plans to switch to more friendly fuels like palm based biodiesel. In your paper, you China imposed restriction on RSO imports. Why? What are the restrictions been imposed.

Cai Neng Bin:
China's environmental protection policy actively promotes the use and upgrading of clean and renewable energy, and promotes the popularization of electric vehicles, natural gas fuel vehicles, ethanol gasoline, etc. At present, the policy focuses on the use of ethanol gasoline and has been implemented in many provinces. However, due to the decline of domestic corn inventory and the limited capacity of biofuels, China will stop the original plan of 10% ethanol gasoline in 2020. In terms of biodiesel, enterprises try to produce and use it according to their own conditions, and actively deal with the conversion of recycled oil, but the country unable to promote the use of it at the policy level like what was being done for ethanol. In addition, palm oil has higher temperature requirements, and the complete reliance on imports also limits its use in China. China's rapeseed oil import mainly relies on Canada. On December 1, 2018, Canada arrested Meng Wanzhou, chief financial officer of Huawei, at the request of the U.S. authorities, and has been detained so far, resulting in tense trade relations between China and Canada. China will significantly reduce Canadian rapeseed and rapeseed oil imports from 2019 and import from other countries, but it cannot replace the supply gap created by shortage from Canada.
4 years ago

Nur Fairuz

4 years ago

What has developed in China’s oils and fats complex since the signing of phase 1 of US-China trade deal. What is the minimum quantity of tariff free US soyabean import you expect China to receive so that the US-China trade saga will not be a problem for China soybean users

Cai Neng Bin:
Upon the signing of trade agreement between China and the U.S., China actively carried out the inquiry of American agricultural products. Although China's enterprises increased the application for the quota to import tariff free soybean respectively, current US soybean still has no price advantage over Brazilian soybean, and China still actively purchases Brazilian soybean. From a global perspective, there is still ample supplies of soybean. With Sino-US trade tension eases, China's soybean procurement channels are no longer restricted or limited, and China will appropriately increase soybean imports this year.

Since the issuance of tariff free quota measures last year, China has increased the purchase of soybeans, which is implemented in stages according to the tariff reduction agreement. At present, affected by African swine fever and coronavirus, China's demand has declined significantly, which has affected China's import demand to a certain extent. Increasing soybean procurement means reducing the procurement of some Brazilian soybeans. The procurement volume of soybeans depends on the amount of procurement guided by Chinese government and the price competitiveness of soybeans between US and Brazil. According to the agreement, it is expected that the procurement volume of soybeans will still exceed 30 million MT this year, reaching the level of 2014-2015.

4 years ago

Candy Lee

4 years ago

What is the impact on COVID 19 against Palm Oil industry?

Cai Neng Bin:
The outbreak has led to disturbance of traveling and transportation system, which led to significant reduction in oils consumption. Even if the outbreak is over, it will take a long time to recover the demand in the later stage. At present, the disposal of stock among the coastal factories has declined significantly, the inventory has remained above 1 million MT at the end of February, and the import needs of palm oil in China will also decline significantly in the first half of the year. It is estimated that China's palm oil consumption will decrease by 400,000-500,000 MT in 2020 compared with 2019
4 years ago