China sharply increases palm oil imports, increasing pressure on vegetable oil market

In May 2026, China imported 500,000 tons of vegetable oils, an 8.2% increase over the same period last year. In January-May, total imports reached 2.93 million tons, an increase of 17.5% over the same period in 2025, according to data from the customs statistics of the PRC.

The main driver of import growth was palm oil. In May, its supplies increased to 220 thousand tons, which is 25.2% more year-on-year, and in the first five months of the year, imports reached 1.11 million tons, exceeding last year's figure by 54.8%. The growth was ensured by active supplies from Southeast Asian countries and stable demand from the food industry and other consumer sectors.

Imports of soybean oil remain insignificant. In May, China purchased only 10 thousand tons, which is 17.4% more than last year, and in January-May imports amounted to 30 thousand tons (+20.8%). The main needs of the domestic market are covered by its own processing of soybeans, so imports of soybean oil play a supporting role.

At the same time, imports of rapeseed oil decreased to 970 thousand tons in five months, which is 5.6% less than a year earlier, although some recovery in supplies was observed in May.

China imported 11.79 million tonnes of soybeans in May, down 15.3% year-on-year. In January-May, the country imported 36.94 million tonnes of soybeans, down 0.4% from the same period in 2025. Analysts say the reduced soybean supply could limit soybean oil production in the medium and long term.

China's spot market witnessed mixed price dynamics on June 23. Palm oil prices rose slightly due to reduced port inventories and limited supply. At the same time, soybean oil prices remained stable due to large inventories, estimated at around 1.2 million tonnes, and seasonally weak demand. Rapeseed oil, on the other hand, continued to decline due to increased domestic inventories and low buyer activity.

Additional pressure on the vegetable oil market is created by a further decline in global oil prices after the reduction of geopolitical tensions between the US and Iran. The decline in energy prices weakens expectations for demand from the biodiesel industry and restrains the growth of vegetable oil quotations.

In the short term, analysts expect mixed trends to persist. Palm oil will continue to receive moderate support from high imports and declining inventories, while the rapeseed oil market will remain under pressure from increased supply and weak demand.