Russian Sunflower Oil Displaces Ukrainian Oil in the Markets of India and China
Russian oil has started to significantly dominate the key market for Ukrainian oil – the Indian market. This was reported by Andriy Kupchenko, head of business projects at IA "APK-Inform," at the third international fat-and-oil conference "FOC 2024: Fats and Oils Conference," held on June 7 in Almaty.
"Since 2022, the global market has been witnessing a redistribution of sunflower oil flows, directly related to logistical constraints in Ukraine. In the current season, Ukrainian sunflower oil exports to India have decreased by 24%, while exports of Russian product in this direction have increased almost threefold," the expert noted.
Another market where Russian oil has become dominant is the Chinese market. According to A. Kupchenko, since the beginning of the current season, Ukrainian sunflower oil exports to this market have decreased by 70%, although shipments of Russian oil have also declined (by about 40%).
Meanwhile, Ukrainian sunflower oil has strengthened its position in the Turkish market. "Deliveries of oil from Ukraine to Turkey have significantly increased over the past two seasons, displacing the Russian product," said the speaker. He also mentioned that another market where both Ukraine and Russia are increasing their presence is the Egyptian market. In the current season, Ukrainian oil exports to this market have increased almost sevenfold, and Russian oil exports have approximately doubled. However, the Russian product remains dominant in the Egyptian market, the expert clarified.
Export prices for Ukrainian sunflower oil with delivery to Black Sea ports remain at the level of $900-910/t due to significant supply shortages at the end of the season and active exports in recent months. According to Trading Economics, during the week, the average price of sunflower oil with delivery to buyers increased by 1% to $925/t, adding 8.4% over the month.
The supply of new harvest soybean and rapeseed oil in global markets will slightly weaken the demand for more expensive sunflower oil in the near future.
