2025 Malaysia Palm Oil (HS 1511) Export: Surge & Shift

Key Takeaways

Palm Oil, classified under HS Code 1511, exhibited strong growth in export value from January to June 2025.

• Market Pulse: Export value surged from $1.14B in January to $2.95B in June, driven by Malaysia's temporary export duty cut and forward-selling ahead of the policy change.
• Structural Shift: Malaysia Palm Oil Export reliance on India (15.83% of value) and Kenya (12.37%) highlights geographic concentration risk, with India demanding higher-value grades while Kenya prioritizes bulk purchases.
• Product Logic: HS Code 1511 trade data reveals a commodity-driven market, with crude palm oil ($1.58/kg) commanding a slight premium over refined variants, emphasizing logistics efficiency over differentiation.

This overview covers the period from January to June 2025 and is based on verified customs data from the yTrade database.

Malaysia Palm Oil (HS Code 1511) Key Metrics Trend

Market Trend Summary

Malaysia's Palm Oil Export trend showed a strong upward trajectory in total value from January to June 2025, despite some volatility in shipment volumes. Export value climbed from $1.14B in January to $2.95B in June, with the most pronounced growth occurring from April onward. Volume initially fluctuated, declining in February and April, but surged decisively in May and remained elevated compared to early-year levels.

Drivers & Industry Context

The sharp expansion in both value and volume during May and June aligns directly with Malaysia's temporary reduction of its palm oil export duty from 10% to 9.5%, effective June 1 [Global Trade Alert]. This policy likely spurred forward-selling and accelerated shipments ahead of the duty change, boosting the hs code 1511 value. Concurrently, secured U.S. tariff exemptions improved market access (Deccan Herald), though this was partly offset by declining EU import demand linked to regulatory pressures (EIA International).

Table: Malaysia Palm Oil Export Trend (Source: yTrade)

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Malaysia HS Code 1511 Export Breakdown

Market Composition & Top Categories

The Malaysia HS Code 1511 export market is dominated by refined palm oil (HS 1511903700), which captured over a quarter of the total export value at 26.2% from January to June 2025. According to yTrade data, crude palm oil (HS 1511100000) follows with a 21.1% value share, while the remaining exports consist of various refined fractions, including those under HS 1511904900 (16.9%) and HS 1511902000 (10.9%).

Value Chain & Strategic Insights

Unit prices range from $0.83 to $1.65 per kilogram, indicating a commodity-driven market where pricing is highly sensitive to volume and basic refinement stages rather than specialized quality tiers. The HS Code 1511 breakdown reveals that crude oil commands a premium ($1.58/kg) over some refined variants, but the narrow price band and high volume concentration confirm this as a classic bulk commodity trade. For traders, this structure emphasizes logistics efficiency and cost leadership over product differentiation.

Table: Malaysia HS Code 1511) Export Breakdown Details (Source: yTrade)

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Malaysia Palm Oil Destination Countries

Geographic Concentration & Market Risk

India dominates Malaysia's palm oil export destinations, accounting for 15.83% of total value from January to June 2025. This heavy reliance on a single market creates concentration risk, though Kenya follows as a secondary outlet with 12.37% value share. The top three partners—India, Kenya, and China—collectively represent over 35% of Malaysia's palm oil export value, indicating moderately concentrated market exposure.

Purchasing Behavior & Demand Segmentation

India's value ratio (15.83) dramatically exceeds its weight ratio (7.59), signaling quality-conscious demand for high-value palm oil specifications rather than bulk commodity purchases. Conversely, Kenya shows stronger weight ratio (6.26) relative to value (12.37), indicating price-sensitive bulk processing. Japan and Malaysia display high frequency ratios (3.18 and 3.21 respectively), suggesting fragmented, regular shipments likely for retail distribution or food manufacturing, offering both margin potential in India and volume scale in Kenya.

Table: Malaysia Palm Oil (HS Code 1511) Top Destination Countries (Source: yTrade)

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Malaysia Palm Oil Buyer Companies Analysis

Buyer Concentration & Market Structure

According to yTrade data, Malaysia Palm Oil buyers are overwhelmingly dominated by a core group of high-volume, loyal partners, who delivered 84.94% of the total export value from January to June 2025. This cluster represents stable, contract-based supply chains, with key accounts like MEWAH MARKETING PTE LTD and MITSUI AND CO., LTD. anchoring the market. Their consistent, high-frequency purchasing underscores a mature, relationship-driven trade environment for this commodity.

Purchasing Behavior & Sales Strategy

The dominance of these key accounts dictates a sales strategy focused on securing and retaining long-term supply contracts, as losing even one major client poses a significant concentration risk. Sellers should prioritize reliability and consistent quality to meet the recurring needs of these industrial buyers, whose purchasing patterns for HS Code 1511 are built on predictable demand. [Global Trade Alert] reported a marginal export duty cut in May 2025, which may have slightly boosted margins for these high-volume shipments during the period.

Table: Malaysia Palm Oil (HS Code 1511) Top Buyers List (Source: yTrade)

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Action Plan for Palm Oil Market Operation and Expansion

• Diversify buyer base: Mitigate concentration risk by expanding beyond the top clients (84.94% of export value) to reduce dependency on a few high-volume contracts.
• Target India’s premium segment: Leverage India’s quality-conscious demand (high value-to-weight ratio) to position higher-margin refined palm oil products.
• Optimize logistics for bulk buyers: Streamline supply chains for Kenya and other price-sensitive markets to maintain competitiveness in high-volume, low-margin segments.
• Monitor policy shifts: Stay ahead of export duty changes and tariff exemptions, as seen in June 2025, to capitalize on short-term trade advantages.
• Audit contract terms: Renegotiate with long-term buyers to reflect current market conditions, ensuring margins align with volatile commodity pricing.

Take Action Now —— Explore Malaysia Palm Oil HS Code 1511 Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Malaysia Palm Oil Export in 2025?

The surge in Malaysia's palm oil export value from $1.14B in January to $2.95B in June 2025 was driven by a temporary export duty cut (from 10% to 9.5%) and accelerated shipments ahead of the policy change.

Q2. Who are the main destination countries of Malaysia Palm Oil (HS Code 1511) in 2025?

India (15.83% of export value), Kenya (12.37%), and China (7.59%) dominate Malaysia's palm oil exports, collectively representing over 35% of total value.

Q3. Why does the unit price differ across destination countries of Malaysia Palm Oil Export in 2025?

Price differences stem from demand segmentation: India pays premiums for high-value refined palm oil ($1.65/kg), while Kenya prioritizes bulk purchases of cheaper crude variants ($0.83/kg).

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

Exporters must secure long-term contracts with key buyers like MEWAH MARKETING PTE LTD (84.94% of value) while diversifying beyond India to mitigate concentration risks.

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

Indian buyers face stable, quality-driven supply chains, while Kenyan importers benefit from bulk pricing. Both rely on Malaysia’s cost-efficient logistics for consistent delivery.

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

Malaysia’s palm oil exports are primarily bulk commodities for industrial food processing, with refined variants serving premium markets and crude oil for mass manufacturing.