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Edible oil prices rise, demand up

0 CommentsPrint E-mail CCTV, December 11, 2009
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Some factories have decided to raise edible oil prices in China, causing people rush out to stock up in the hope of saving money. However industry insiders say it's a normal price change with increasing demand at the end of the year and rising raw material prices.

Shoppers in Chengdu are rushing to buy edible oil in supermarkets. It's the fourth time Mrs. Yuan has come to Carrefour to buy some.

Yuan Taizhen, Chengdu Shopper said "I've bought 8 bottles, because I heard the price will go up. The price hasn't changed in Carrefour, but has risen in other markets. So I've come to buy more to save some money.It's a Sichuan tradition to save money."

Supermarkets in Chengdu have all decided to raise the price of edible oil by 10-13 percent before this Friday.

Pu Aiqing, Staff Member of Chengdu Carrefour said "After the message got out, people have begun to stock up on edible oil. Our sales over these three days are double that of normal days."

Although people are queuing up for edible oil, they aren't really clear about the reason for the price rise. Many just stock up following others.

Wang Shuiquan, Chengdu Shopper said "Word spread that edible oil prices will go up, so I've come to buy some before the price rise. I've just bought two barrels, it can save me some money. I want to buy more, but I'm afraid it will go off."

The driving force behind the price surge is the rise in international raw material prices. Most raw materials for China's edible oil rely on imports, and the international price has been climbing continuously. Meanwhile the increased cost of crude oil has also raised transport costs.

Pu Aiqing said "According to our experience, the edible oil price change is normal. Futures prices for colza, soy, and corn, all affect the price of edible oil. So there's no need for people to stock up on oil now. I suggest they buy according to their needs."

The year end often sees increasing demand and rising raw materials prices, so this is a seasonal price change. Vendors warn that the longer edible oil is stocked, the lower its quality becomes. They also guarantee they have enough supply, so people do not need to rush to stock up.

Edible oil prices rise, demand up
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