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For DMG, Shall I Buy Now or Wait?

For DMG, Shall I Buy Now or Wait?

DMG prices have reached a historic high due to rising palm oil costs, driven by Indonesia’s new export policy, global vegetable oil shortages, and supply disruptions from the Russia-Ukraine conflict. Importers are advised to assess demand carefully and stock moderately, as raw material shortages persist amid China’s COVID-19 resurgence. However, Indonesia’s recent adjustment from DMO to increased export duties may bring relief to the market. Stay connected with Chemsino for the latest ingredient price updates.

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DMG price has been fluctuating since September 2021. And it has come to the highest point lately in history.   The main reason for this is :   RAW MATERIAL --- PALM OIL   Indonesia's new exporting policy for Palm oil; Global veg oil supplies squeezed by Russia-Ukraine conflicts; Palm supply could be down by 100,000 T/month   So, what shall the importers do?  
  • Check the market request and make stock accordingly
Due to the new round of COVID-19 spreading in China, the tense situation of raw material shortage still needs some time to resume.  
  • Further stockpiling is not recommended
On Mar 17th, the Indonesian government increased the export duty instead of the new DMO (Domestic Marketing Obligation) policy, the market is expecting positive feedback on DMG price.   Subscribe to us to get the newest market information for food ingredients from Chemsino
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