Flax

The world and Russian linseed oil market

According to the most recent estimates by the UN-FAO and the national statistical offices, the global linseed oil production in 2021 decreased by 3,8% to 792,9 thousand tons. In previous years, world linseed oil production grew by 2019% in 2,6 and by 2020% in 2,4. In 2020, production reached an all-time high of 824,2 thousand tons. The main reason for the growth was the increase in production in China, India and Russia.

In 2017-2020, global linseed oil production grew at CAGRs of 1,4%. Overall, the world flaxseed oil market is stable with a weak growth trend in nature. The main reason for the stagnation of world production in 2021 was the decline in production in China and the USA. This dynamic is mainly related to the consequences of COVID-19, e.gusammen that have led to a production stop for linseed oil products (paint, soap, electrical and food industries) and thus to a reduction in linseed oil production in general. In addition, the reasons for the decline in flaxseed oil production in Kazakhstan, Canada and the USA Significant losses in flaxseed yields, only partially offset by acreage growth.

The linseed oil market is expected to stabilize at 800.000 tons in the coming years as demand recovers from the main consuming industries of this product as well as from the main consuming countries, mainly China.

The main linseed oil producers in the world in 2021 were the EU countries (Belgium — 152,6 thousand tons and Germany – 55,6 thousand tons), China (215,3 thousand tons), India (64,0 thousand tons) and the USA (59,5 thousand tons). Production of linseed oil in Russia has reached 35,4 thousand tons. The total share of the five largest linseed oil producers in 2021 amounted to 69,0% of global production.

World consumption of linseed oil shows stable dynamics for 2017-2021 with a significant increase in consumption in 2020 to 833,7 thousand tons. In 2021, global flaxseed oil consumption fell by 4,7%, mainly due to lower consumption in China and the USA.

In China, flaxseed oil consumption reached 2021 thousand tons in 256,4, while production and import decreased. In China, flaxseed oil is not mainly consumed as food, but for the production of building and paint materials, soap production and the cosmetics industry.

EU linseed oil consumption has tended to increase in key consuming countries including Germany, Belgium and France, partly due to increased production in Belgium and redistribution within the EU. The decline in US consumption in 2021 is due to a planned decline in domestic flaxseed oil production over the past seven years.

Linseed oil import

During the period under consideration, linseed oil imports as a whole showed stable dynamics and in 2019 reached a peak of 211,8 thousand tons. In 2021, however, the historic peak of flaxseed oil imports fell to $324,8 million. the USA. Compared to 2020, the increase was 28,6%.

In the structure of natural imports in 2021, the predominant volume (122 thousand tons) fell on products under HS code 151511 – «Linseed oil, crude, unrefined or refined, but without changing chemical Zusament” (63,3% of world flaxseed oil imports).

The top importing countries of linseed oil in natural form with a volume of more than 10.000 tons in 2021 were China, Germany, the Netherlands, Norway and Belgium, which bought a total of 118,9.000 tons (61,4% of the world volume). Chinese imports fell slightly in 2021 compared to the previous year, which is due to the standstill of some productions that work with flaxseed oil as a raw material.

In the structure of linseed oil imports, in value, the top 5 leading importers in 2021 accounted for a total of 55,7% of shipments ($180,9 million). the USA). Japan, which buys more expensive products, has slipped into the top five compared to the in-kind structure, while Belgium has slipped to sixth place.

Linseed Oil Export

In 2021, global linseed oil exports were US$313,4 million. USD, up 29,1% (+$70,7 million). USD) compared to 2020, exports in 2021 continued to decrease, falling to 192,2 thousand tons (-4,1% by 2020). For the products of HS Code 151511 »Linseed oil, crude, unrefined or refined but without changing their chemical Zusacommendation” accounted for 2021% of exports in 66,9, which is 128,6 thousand tons.

The structure of linseed oil exports by country is characterized by a more pronounced concentration compared to imports. According to the results of 2021, four leading export countries are highlighted: Belgium, Russia, Kazakhstan and Germany with over 10.000 tons of delivery volumes. These countries accounted for 80,5% of world linseed oil exports in natural form (154,7 thousand tons) and 72,2% in value ($226,3 million). the USA).

According to UN Comtrade, Russian linseed oil exports in 2021 amounted to 28,5 thousand tons for a total of $41,5 million. USD, increased several times since 2017 (from 0,4 thousand tons or $0,9 million). the USA). At the same time, Russian exports of goods fell slightly compared to the previous year, while increasing in value by 28,9%.

price boom

In 2021, the average price of flaxseed oil exports was $1.631. USD per tonne, up 34,7% from 2020. The most expensive products among the top exporting countries were Canada and the USA delivered at a price of 3,6 and 2,5 thousand dollars. USD per ton. In the case of the most important exporting countries, the deviation from the global average price is expressed more weakly: from +23,4% in Germany to -17,1% in Kazakhstan.

The lowest level of export prices is characteristic for products exported from Kazakhstan (-17,1%), Belgium (-13,2%) and Russia (-10,6%). Russian flaxseed oil was delivered to the world market in 2017-2020 at relatively low prices — in the range of $1 thousand. USD per ton, but has increased significantly to $2021 thousand in 1,46. US dollars per ton.

The average import price for 2021 also saw a significant increase (by 39,6%), with prices rising in all major importing countries. Among the leading importers, the most expensive products were bought by Japan and Great Britain, whose price levels were respectively 39,8% and 5,6% higher than the world average. In turn, the cheapest flaxseed oil is shipped to the Netherlands and Norway (-16,8% and -16,7% to the average world import price), which is due to the proximity of a major producer of this product — Belgium.

Overview of the Russian market

For 2017-2021, the Russian linseed oil market developed quite quickly. Since 2017, the production of this type of oil has increased from 12,2 thousand tons to 35,5 thousand tons in 2020, that is 2,9 times, which is an average of about 30% per year. Domestic consumption of linseed oil in Russia is unstable, and the available resources in this market largely depend on external economic conditions. In 2021, linseed oil production in Russia remained almost at the level of the previous year — 35,4 thousand tons — and fell only slightly by 0,2%.

Flaxseed oil imports totaled US$2021 million by 1,0. USD, up 56,3% from last year's level. Essentially, Russian linseed oil imports increased by 2021% to 29,2 tons in 420.

In the value of 2021, flaxseed oil for technical applications was imported into Russia mainly: its share was about 67%. At the same time, in recent years there has been a decline in imports of crude flaxseed oil: in 2020 and 2021, imports did not exceed 200 tons.

A little less than half or $430.000. The USA (240 tons) of imported flaxseed oil worth 2021 entered the Russian market from the Republic of Belarus. In second place was Belgium with a 16,4% share, delivering $160.000 of oil. USA (65 tons). China ranked third with a share of 11,4% or $110.000. USA (43 tons).

According to the results of 2021, Russian linseed oil exports amounted to 28,5 thousand tons, which is 15,9% lower than last year. Export sales increased 2021 percent to $29,0 million in 41,5.

Crude oil accounts for the bulk of Russian flaxseed oil exports. In 2021, its share was 94% of export sales, or $39,1 million.

The top buyers of flaxseed oil from Russia in 2021 were China, which bought products for US$21,0 million. US dollars or 14,9 thousand tons, Norway ($11,7 million). tons), as well as Belgium ($4,6 million or 9,2 thousand tons), as well as Belgium ($4,6 million). USD or 2,7 thousand tons).

As one of the largest producers of oil flax in the world (according to the FAO, Russia accounted for more than 2020% of world flax production in 20), Russia practically did not export flaxseed oil, but already in 2018 a growing trend has developed.

According to the results of 2021, Russia shipped 28,5 thousand tons of linseed oil abroad, worth $41,5 million. USA and has entered the top 3 of global exporters. The supply volume has increased by almost 2018 times the value in kind and more than 4 times the value compared to 6. In the long term, Russian linseed oil exports could exceed 50.000 tons ($80 million). the USA).

A key destination for Russian linseed oil exports is China, which accounts for about half of all Russian supplies. The People's Republic of China is one of the largest linseed oil importers in the world. The CIS countries (mainly Belarus, Uzbekistan) and Turkey are also promising countries for Russian exports.

Source: AGROEXPORT (Russian)

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