RSPO suspension may see IOI customers switch to other suppliers

The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 1.1 percent to reach 2,639 ringgit ($681) per tonne at the closing trade. Traded volumes were 43,083 lots of 25 tonnes each, versus a 2015 daily average of 44,600 lots

PETALING JAYA: A possible suspension of IOI Corp Bhd’s Roundtable on Sustainable Palm Oil (RSPO) certification could see the plantation giant’s customers switching to other suppliers to comply with their sustainability policies.

Hong Leong Investment Bank (HLIB) Research said this was a potential downside risk, as the group’s downstream operations would be hit.