Indonesia Palm Kernel Oil HS151329 Export Data 2025 June Overview

Indonesia Palm Kernel Oil (HS 151329) 2025 June Export: Key Takeaways

Indonesia's Palm Kernel Oil Export (HS Code 151329) in June 2025 shows China Mainland as the dominant buyer, absorbing 32.66% of volume but at a lower unit price (1.53 USD/kg), signaling bulk purchases for cost efficiency. The market is highly concentrated, with China and the U.S. driving demand, while smaller importers like Russia indicate niche applications. Exporters must prioritize stable supply to key markets while diversifying to mitigate risks, especially after Indonesia's recent export levy hike. This analysis, covering June 2025, is based on processed Customs data from the yTrade database.

Indonesia Palm Kernel Oil (HS 151329) 2025 June Export Background

Indonesia's Palm Kernel Oil (HS Code 151329) is a key vegetable oil used in food processing, cosmetics, and biofuels, with stable global demand due to its versatility. In 2025, Indonesia adjusted export policies, raising levies on palm products to 10% for crude and 9.5% for refined oils [FAS USDA], impacting June 2025 exports. As the world's top palm oil producer, Indonesia's trade shifts in HS Code 151329 exports significantly influence global supply chains.

Indonesia Palm Kernel Oil (HS 151329) 2025 June Export: Trend Summary

Key Observations

In June 2025, Indonesia's exports of Palm Kernel Oil under HS Code 151329 surged to $257.89 million in value and 154.07 million kilograms in volume, marking a significant monthly increase and highlighting robust export activity for this period.

Price and Volume Dynamics

Compared to May 2025, the June exports showed a sharp rise, with value increasing by approximately 62.7% and volume by about 77.3%, while the unit price saw a slight decrease. This volatility aligns with typical seasonal patterns in the palm oil industry, where mid-year often experiences production peaks or stock liquidations ahead of harvest cycles, driving export volumes higher even as price adjustments occur due to market saturation or preemptive shipping.

External Context and Outlook

The spike in June exports can be partly explained by Indonesia's decision to raise export levies for palm products in May 2025 [USDA Report], which likely prompted exporters to accelerate shipments to avoid higher costs. This policy move, aimed at supporting domestic biofuel programs, underscores ongoing regulatory influences on palm kernel oil trade, suggesting continued volatility in the coming months as global demand and competing oil markets evolve.

Indonesia Palm Kernel Oil (HS 151329) 2025 June Export: HS Code Breakdown

Product Specialization and Concentration

In June 2025, Indonesia's Palm Kernel Oil exports under HS Code 151329 were heavily concentrated in sub-code 15132995, which accounted for 69.52% of the value and 70.17% of the weight. This product, described as vegetable oils from palm kernel or babassu, not crude but refined without chemical modification, had a unit price of 1.66 USD per kilogram. The price disparity with other sub-codes, ranging from 1.47 to 2.03 USD per kilogram, indicates a focus on a mid-range grade within this export category.

Value-Chain Structure and Grade Analysis

The remaining sub-codes show a clear grade-based structure. Sub-code 15132991, with a higher unit price of 1.94 USD per kilogram and a 17.06% value share, represents a premium grade. Sub-code 15132994, at 1.47 USD per kilogram and 12.63% value share, aligns with a standard grade. The low-frequency sub-code 15132911, though priced at 2.03 USD per kilogram, is minor and likely a niche variant. This structure suggests trade in fungible bulk commodities, where price is tied to refinement level rather than brand differentiation.

Strategic Implication and Pricing Power

Exporters of Indonesia Palm Kernel Oil HS Code 151329 should prioritize higher-grade products like 15132991 to leverage better margins, given the price sensitivity. [USDA] raised export levies in May 2025, which may compress profits and reinforce the need for strategic focus on premium segments to maintain pricing power in the 2025 June market. (USDA)

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Indonesia Palm Kernel Oil (HS 151329) 2025 June Export: Market Concentration

Geographic Concentration and Dominant Role

In June 2025, Indonesia's Palm Kernel Oil HS Code 151329 Export was heavily concentrated, with China Mainland as the dominant buyer, accounting for 32.66% of the weight but only 29.84% of the value. This value-weight disparity suggests a lower unit price, around 1.53 USD/kg, indicating that China purchases this commodity in bulk for cost-efficient sourcing, typical for raw agricultural products.

Partner Countries Clusters and Underlying Causes

The importers form three clear clusters: first, high-volume buyers like China and the United States, driven by massive food and biofuel demand; second, moderate importers such as Brazil and the Netherlands, likely acting as processing or re-export hubs due to their industrial capabilities; and third, smaller markets like Russia and Saudi Arabia, possibly sourcing for specific regional needs or niche applications.

Forward Strategy and Supply Chain Implications

Exporters should prioritize stable supply to key markets like China and the US, while monitoring policy shifts, such as Indonesia's increased export levies in May 2025 [USDA], which may raise costs and require price adjustments. Diversifying to emerging markets could mitigate risks from concentrated demand.

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Indonesia Palm Kernel Oil (HS 151329) 2025 June Export: Action Plan for Palm Kernel Oil Market Expansion

Strategic Supply Chain Overview

Indonesia Palm Kernel Oil Export 2025 June under HS Code 151329 operates as a bulk commodity trade. Price is driven by product grade, with premium refined oils (e.g., sub-code 15132991 at 1.94 USD/kg) yielding higher margins. Geopolitical factors, like Indonesia's May 2025 export levy increase, add cost pressure. Supply chain implications center on supply security for dominant high-volume buyers (e.g., China, USA) and vulnerability from over-reliance on a few key partners. The market lacks diversification, increasing exposure to policy shifts or demand shocks.

Action Plan: Data-Driven Steps for Palm Kernel Oil Market Execution

• Prioritize premium sub-code exports like 15132991 to key buyers. Use trade data to identify which high-frequency partners purchase higher grades, then negotiate long-term contracts at better margins. This directly boosts profitability amid rising export costs.
• Diversify export destinations beyond China and the USA. Analyze import patterns in emerging markets (e.g., Brazil, Netherlands) and target them with tailored offers. This reduces concentration risk and stabilizes revenue streams.
• Monitor buyer frequency data to anticipate order cycles. Align production and logistics with the purchasing rhythms of dominant high-value buyers. This prevents inventory overstock or shortages, optimizing operational efficiency.
• Leverage HS code price disparities in sales negotiations. Highlight the quality-value proposition of premium grades when engaging with large-volume buyers. This strengthens pricing power and differentiates offerings in a competitive market.

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Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Palm Kernel Oil Export 2025 June?

The surge in June 2025 exports (62.7% value increase) was driven by preemptive shipping ahead of Indonesia's raised export levies in May, alongside typical mid-year production peaks.

Q2. Who are the main partner countries in this Indonesia Palm Kernel Oil Export 2025 June?

China dominated with 32.66% of the weight, followed by the United States and Brazil, reflecting bulk demand for food/biofuel and processing hub roles.

Q3. Why does the unit price differ across Indonesia Palm Kernel Oil Export 2025 June partner countries?

Price disparities stem from grade specialization: premium sub-code 15132991 (1.94 USD/kg) vs. standard 15132994 (1.47 USD/kg), with China buying cheaper bulk grades.

Q4. What should exporters in Indonesia focus on in the current Palm Kernel Oil export market?

Exporters must prioritize high-value, high-frequency buyers (94.76% of trade) and premium sub-codes like 15132991 to offset rising levies and maintain margins.

Q5. What does this Indonesia Palm Kernel Oil export pattern mean for buyers in partner countries?

Buyers in China/US benefit from stable bulk supply but face price sensitivity; niche markets like Russia/Saudi Arabia may leverage smaller, specialized orders.

Q6. How is Palm Kernel Oil typically used in this trade flow?

It’s traded as a fungible bulk commodity, primarily for food processing and biofuel production, with price tied to refinement grade rather than branding.