[Special Stock] Indonesia Bans Palm Oil Exports... JC Chemical Hits Upper Limit

[Asia Economy Reporter Hwang Junho] On the 25th, as soon as the stock market opened, the stock price of JC Chemical hit the upper limit.

As of 9:06 a.m. that day, JC Chemical was trading at 10,050 won, up 29.85% from the previous day. The rise is analyzed as a consequence of Indonesia's ban on edible palm oil exports starting from the 28th. Since Indonesian palm oil accounts for more than half of the world's palm oil supply, the suspension of its exports is expected to cause a price increase.

Palm oil is a vegetable oil made by steaming and pressing the fruit of the palm tree. It is used not only for cooking oil and processed food manufacturing but also as a raw material for cosmetics, detergents, and biodiesel.

Indonesian President Joko Widodo announced on the 22nd, "From the 28th, the export of edible oil and edible oil raw materials will be banned until further notice."

Palm oil prices have tripled over the past two years, and in the last two months, they have risen by about 40% more. This price increase is due to the impact of the Russia-Ukraine war. Russia and Ukraine account for 80% of the world's sunflower oil exports.

JC Chemical is a company that manufactures and sells biodiesel and bio-heavy oil. It is the first in Korea to design and produce biodiesel using a continuous production process. It has also completed palm oil factories in Malaysia and Indonesia. JC Chemical is the first domestic biofuel company to directly produce the raw material palm oil and supply it to refineries.