BEIJING, Dec. 7 /PRNewswire-Asia/ -- Himfr reports that recently there has been a new round of oil price increases. The two main Chinese cooking oil producers have increased their prices; price rises have quickly spread to Beijing, Shanghai, Hangzhou, Guangzhou and other cities.

For the past two years, oil prices have risen sharply but also fallen. Recently, a trend of price increases has emerged. Himfr's analyst analyzes what triggered the current rise in oil prices, what effects to the economy and people's lives oil prices rising will have, and whether it will lead to inflation.

Himfr: cooking oil prices rising due to raw material prices rising

Since November of this year, the cooking oil market conditions have been very volatile. Prices of soybean oil have steadily risen.

On December 1st, the main cooking oil producer released a retail price increase notice pertaining to soybean oil, blended oil, rapeseed oil and other oils. Prices rose about 10%-15%. Prices for Arawana's soybean oil and rapeseed oil increased 6%-6.5%.

Following the price increases in mid-November, the wholesale price of soybean oil has recently shifted: the bulk wholesale price of soybean oil went from 7,560 yuan per ton to 7,900 yuan, up 4.5%.

Himfr analyzes cooking oil price increases, mainly due to the impact of world price shifts, the current rise in raw material prices has far exceeded companies' set oil price increases; enterprises are facing pressure from the rising cost of raw materials.

China's wheat and rice production ranks first in the world; supply and demand of crops basically balance out. However, in terms of vegetable oils, there exists a gap of about 15 million tons, and China depends on imported soybeans, bean oil, palm oil, rapeseed oil and so on. In recent years, China's soybean imports increased year by year, reaching 37.43 million tons in 2008.

Recently, the international price of soybeans after duty paid rose from more than 3,500 yuan per ton to 3,900 yuan per ton, while due to the drought producers of soybean in China's north-east cut production early, which will lead to a rise in the price of Chinese soybeans. Of all agricultural products, China imports soybeans most, importing about 70%, so China's soybean market prices are to a large extent constrained by the international market. This year, due to the cut production of soybeans in China due to weather and prices rise of imported soybean, cooking oil price have increased.

Himfr's analyst analyzes that increases in cooking oil prices are related to the rise of raw material prices and market supply and demand; it is self-regulation of the market and also a normal phenomenon, so consumers do not need to worry about this matter.

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