Challenging year for palm oil refiners

Palm oil challenge

KUALA LUMPUR: Local palm oil refiners may be in for a tough year as the industry suffers from higher cost of crude palm oil (CPO) and stagnating yields.

While upstream planters have become prime beneficiaries of the present lofty CPO spot price of about RM4,000 per tonne, analysts believe Malaysian palm oil refiners may be losing out, particularly when rivals in Indonesia are enjoying a cost advantage due to a new export tax structure.