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Last Updated: 26 February 2024

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KUALA LUMPUR: Supermax Corporation Bhd in announcing its second quarter financial year 2024 results said that China glove manufacturers are likely to have taken over global leadership in the rubber glove market, at the very least in  terms of pricing.

In its filing with Bursa Malaysia Securities Bhd, Supermax said average selling prices (ASPs) remain suppressed with manufacturers from China proving to be daunting competitors.

At the two most recent large international trade shows, the take-away was that the oversupply situation is expected to moderate gradually over an extended period as the industry goes through a consolidation stage.

Smaller players are expected to exit the market while while the bigger players are scaling back their expansion and retiring older factories and production lines bowing out.

Supermax said a meaningful recovery in demand-supply is likely to only take place sometime in 2025, as it reportednarrower losses in the second quarter ended Dec 31, 2023 of financial year 2024.

It reported a net loss for the second quarter of the financial year 2024 (2QFY24), narrowed to RM44.4 million from RM108.07 million in the corresponding period of the previous year.

This was largely due to lower forex losses and higher interest income.

Revenue however fell 16.7 per cent to RM145.6 million from RM174.8 million in the corresponding period last year.

For the six-month period of FY24, Supermas reported a net loss of RM46.4 million, compared with a net loss of RM102.4 million for the same period in FY23.

This was despite a 23 per cent drop in revenue to RM323.5 million for the six-month period in FY24.

Currently, the Supermax Group is acquiring new contracts at existing low market rates and narrow profit margins.

"The company does not expect to see a significant improvement in performance for the rest of the year 2024 due to the high volume of high-priced stocks at its overseas distribution centres."Cost management measures have helped to improve the company's profitability to an extent but the high material costs and costs of utilities currently and going forward are expected to result in continued squeeze on margins," it said.

Supermax has strategically adapted to challenging market conditions by shutting down outdated manufacturing plants and investing in new, efficient facilities.

"The plan to build 6 new modern and more efficient manufacturing blocks is still in place, with production lines being installed gradually at a pace that takes into account the current and expected market conditions," the report said.

IThey are also expanding overseas operations, notably in the USA, to mitigate rising protectionism and import barriers.

"This initiative will place Supermax in a favourable position amidst the implementation of heightened import barriers, increased import duties, and a shift towards domestic production. "We anticipate this trend not only in the US but also in other major importing nations," the statement said.

Through investments in automation technology and production capacity, Supermax aims to reduce costs and enhance competitiveness, positioning itself for growth when the glove market rebounds in the next four to five quarters.

https://www.nst.com.my/business/corporate/2024/02/1015799/supermax-china-likely-have-taken-over-global-leadership-rubber

Sumber : New Straits Times

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Last Updated: 26 February 2024

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KOTA KINABALU: Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said Malaysian palm oil exports to China will be increased by 3.4 million metric tonnes this year.

“We are building on last year’s agreements to strengthen agricultural and palm oil cooperation,” he said at the Malaysia-China Chamber of Commerce Sabah branch Lunar New Year Celebration 2024, here. 

The celebration commemorated the 50th anniversary of Malaysia-China diplomatic relations. 

“Currently, China is Malaysia’s second-largest palm oil export market. In 2023, Malaysia exported palm oil worth RM5.66 billion (1.47 million metric tonnes) to China,” he said. 

China is an important market for downstream palm oil industries and palm oil products in Malaysia. 

“My Ministry, through the Malaysian Palm Oil Board, has collaborated with several prominent Chinese food conglomerates such as Fujian Panpan Foods Group, Dali Foods Group and Grains Oils and Foods Co. Ltd, on various research and development initiatives for palm oil plantations,” he said.

He said this aims to increase the value-added of palm oil in downstream products, including food ingredients (such as Mala hot pot), oleochemicals and animal feed.

“I am also pleased to learn that Grand Industrial Holding’s wholly-owned subsidiary, Grand Oils and Fats (Dongguan) Co. Ltd is the first facility outside of Malaysia and in the People’s Republic of China to be certified with Malaysian Sustainable Palm Oil Supply Chain Certification Standard (MSPO SCCS) since Oct 21, 2022,” he said.

He said these achievements reflect the close trade relations between Malaysia and China and the mutually beneficial cooperation established between the two countries. 

He also noted that during his tenure as Deputy Minister of Agriculture and Food Security last year, he actively promoted the protocol for fresh durian exports to China to be materialised this year. 

“This initiative seeks to bring fresh Malaysian durians, such as Musang King and Black Thorn, which are known for their high quality, to Chinese consumers allowing them to experience the authentic and delectable flavours of Malaysian durians,” he said. 

He also said during the 45th Asean Ministerial Meeting on Agricultural and Forestry last October, he held bilateral talks with China’s General Administration of Customs on agricultural product quarantine, resulting in six agreements and strengthening cooperation in agricultural product trade between the two countries, including durians, bird nests and aquaculture products. 

“Although I have moved to a different ministry, I am hopeful that all of these efforts commemorating the 50th anniversary of Malaysia-China diplomatic relations would be achieved one by one, boosting and cementing bilateral agricultural commerce and producing further economic gain,” he said. 

He also hoped to see the friendship between Malaysia and China remain strong, to achieve a brighter future by making Malaysia-China exchanges and interactions more dynamic and wonderful.

https://www.dailyexpress.com.my/news/229329/3-4-million-more-tonnes-palm-oil-for-china-minister/

Sumber : Daily Express

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Last Updated: 21 February 2024

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KOTA KINABALU (Feb 20): The cocoa sector contributed RM8.2 billion to the national income last year, which is a 5% increase compared to RM7.8 billion in 2022.

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said a large part of the amount was contributed by the export earnings of semi-finished cocoa products such as cocoa butter and cocoa powder.

“At the upstream level, Malaysia’s cocoa plantation area is 6,123 hectares, a slight increase compared to 5,985 hectares in 2022.

“This increase of 138 hectares is the result of the new cocoa plant programme that has been implemented by the Malaysian Cocoa Board (LKM),” he said at the Seminar On Sustainability In Cocoa Supply Chain Through Advanced Technology: Consultation With Industry On Cocoa Advanced Technology 2024 here today.

Also present were LKM chairman Datuk Matbali Musah and LKM director-general Datuk Ramle Kasim.

Chan said as much as 89% of the cocoa plantation area in Malaysia is cultivated by smallholders, with Sabah still being the state with the largest cocoa plantation area at 3,572ha, or 58% of the country’s cocoa plantation area.

He said the world’s demand for cocoa beans is increasing, which directly contributed to the sudden increase in world cocoa bean prices, and that the price of cocoa beans in Malaysia has now reached RM17 per kilogramme compared to RM8 in 2022.

In the meantime, Chan said LKM is implementing several strategies to increase cocoa productivity, such as strengthening the efficiency of farm management using mechanisation, digital data, and the Internet of Things (IoT) technology.

He also said that LKM has been allocated RM3 million to implement mechanisation and technology in cocoa plant management for the period 2024 to 2025.

https://theedgemalaysia.com/node/701592

Sumber : The Edge Malaysia

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Last Updated: 21 February 2024

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KUALA LUMPUR: BMI Country Risk & Industry Research (BMI), a product of Fitch Solutions Group Ltd, has made an upward revision to its forecast for the average price of Bursa Malaysia-listed third-month palm oil futures contracts in 2024 to RM3,750 per tonne from RM3,515 per tonne previously.

It said in a statement that in part, this reflects the subsequent persistence of price strength that started in the third quarter (3Q) of 2023, which saw contracts rose by 23.2 per cent between start-June and start-September.

At the same time, it said palm oil prices have more or less traded within five per cent of RM3,851 per tonne (+/- RM193 per tonne) since mid-2022.

Its revised forecast, however, does point to a softening of prices from its current levels through 2024, with palm contracts having traded at an average level of RM3,830 per tonne up to Feb 14, 2024.

"In the short term, we consider palm oil prices to be capped in light of price trends in the wider edible oils complex, expectations for large soya bean harvests in major producers and weak demand in China.

"Moreover, the impact of the El Niño event, now expected to dissipate between April and June 2024, on cultivation conditions in Indonesia and Malaysia is thought to be quite subdued," said BMI.

Meanwhile, the expected transition to La Niña conditions between June and August 2024 could weigh on market sentiment, testing price support.

BMI viewed that average palm oil prices would fall in 2025 relative to 2024, a reflection of a high base as well as the potential for a La Niña event to support oil palm cultivation, but at the same time have made an upward revision to its price forecast, now projecting that contracts would trade at an average level of RM3,500 per tonne.

However, it also reinforced the tail end of its price outlook in order to reflect a deceleration in the rate of palm oil export growth in Indonesia and Malaysia, which reflects the former’s commitment to higher domestic biodiesel blending mandates as well as a shift in oil palm production growth drivers in both markets.

"In our view, the world palm oil market will generate a production surplus of 2.0 million tonnes in the 2023/24 season, a three-season low.

"We forecast that this surplus will increase through the medium term, anticipating a surplus of 2.5 million tonnes in the 2024/25 season and season-on-season increases of 0.2-0.3 million tonnes thereafter," it said.

In terms of price, it maintained that average annual palm oil prices would decline through its forecast period, projecting mean prices of RM3,400 per tonne in 2026, RM3,300 per tonne in 2027 and RM3,205 per tonne in 2028.

Risk factors to its outlook include the development of biodiesel policies, the evolution of alternative edible oils’ prices and sustainable production efforts. – Bernama

https://www.thestar.com.my/business/business-news/2024/02/20/bmi-revises-2024-forecast-for-palm-oil-futures-contracts-to-rm3515-per-tonne

Sumber : The Star