TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Sinarmas remains cautious over CPO market in Europe
Change Size
Workers load oil palm fresh fruit bunches onto a truck. (kompas.com/Iwan Setiyawan)
S
inarmas group has stayed conservative over the CPO market in Europe, despite France's decision to revoke a progressive tax on crude palm oil (CPO) products, suspecting that other proposals with different trade barriers might be prepared.
Sinar Mas Agro Resources and Technology (SMART) director Agus Purnomo confirmed that the extra tax had been cancelled in June. However, it was not the first time France planned to impose a higher tax on CPO, after its quadruple tax known as the 'Nutella Tax' in 2012.
"We are still aware of this issue, because France is a significant premium CPO market," Agus told The Jakarta Post in Jakarta on Friday, adding that the price of CPO products in the European Union member state was US$5 to $20 higher per metric ton.
In terms of volume, however, the demand was not as high as those in Asia's main CPO importers, such as India and China. The premium market required the suppliers to have sustainable certifications such as those issued by Roundtable on Sustainable Palm Oil (RSPO).
"Sinarmas group was among the first to get a RSPO certificate so we could take advantage of the premium market, but right now the premium price is depleting, not because of decreasing demand but rather on the supply side, as more plantations received the certification," he added.
Currently, the CPO price is around $620 to $640 per ton, halved from its highest record during the commodity boom in 2008 at $1,200 per ton. (ags)
