Notes

Vietnam wood pellet production and exports
Vietnam timber pellet production as well as exports
In the past 7 years, Vietnam timber pellet export grows from zero to around 2.75 million loads each year, with the majority of to Korea as well as Japan. But as the cost benefit decrease, will it continue to grow? What's the fad of Vietnam wood pellet industry?

John Swan, an operation expert who has been guiding the design and also devices selection for brand-new pellet plants in Vietnam, evaluated the existing circumstance and also future fad of Vietnam timber pellet export.

Vietnam wood pellet manufacturing benefits from inexpensive
Wood pellets in Vietnam are generally constructed from the spin-offs of furniture production. These sawdust has reduced moisture web content and also little dimension. Many very early timber pellet factories do not require drying out or crushing equipments. With low labor expense, they can save a large amount of manufacturing price.

For a long time, there are a a great deal of container freights delivered from Korea to Vietnam as well as only small quantities from Vietnam to Korea. Wood pellet suppliers can utilize the excess vacant container for delivery at low cost. The transport price is less than $10 per bunch.

Vietnam wood pellet manufacturing cost will increase
The delivery price is mosting likely to rise. The rapid development of freights from Vietnam to Korea lower the excess containers. The shipping cost will rise to $20/ton from Vietnam to Japan.

The raw product price is going to rise. The furnishings manufacture in Vietnam rise from 2.1 million tons to 7.2 million heaps in the past ten years, with the annual growth rate of 13%. By krone pellet machine price , the wood pellet export raises from 160,000 to 2.46 million lots, with the annual growth price of 61%. So the need for furnishings handling waste growth a lot higher than the supply.

To increase production, Vietnam suppliers will significantly rely on woodland residuals and also logs. These products set you back higher and need peeling, damaging, crushing and also drying out for making pellets. So the minimal price will certainly rise.

Vietnam wood pellet export rate will certainly increase
Most of Vietnam's wood pellets are exported to Korea and also Japan.

In the graph below, the eco-friendly line shows the weighted price of the leading 6 timber pellet distributors to Korea, as well as the red line reveals the rate of Vietnam wood pellets. As Vietnam domains the Korea timber pellet market, various other 5 suppliers only occupy less than 20% market share. We can locate that the growth of Vietnam timber pellet rate pushes up the typical heavy rate.


Japan timber pellet market additionally mirror the surge of Vietnam timber pellet cost. A lot of Japan's timber pellets are imported from Canada and Vietnam, with Canada taking up 65% -70%. The environment-friendly line shows the weighted rate of Canada as well as Vietnam wood pellet export. The red line reveals Vietnam's timber pellet export rate rebound.

The growth of Vietnam wood pellet market is restricted
We can assess the growth potential based on the production strength of a certain location. It describes the total wood pellet manufacturing divided by the production location. The production area does not consists of the land that is not forested or is not readily available for tree harvesting.

According to stats, Vietnam timber pellet production proliferates, with the manufacturing strength from 8ton/squre km to 13.4 ton/squre kilometres. It has exceed the largest wood pellet production states in America, Georgia and north Carolina.

This procedure doesn't account for various other sectors depending on forestry resources, like paper mills and wood products mills. pto wood pellet mill for sale have huge available forestry location however reduced pellet manufacturing strength. They might be prospects for brand-new wood pellet export capability.

In all locations, the first set of timber pellet factories have the very best mix of basic material distribution expense as well as mill-to-port logistics, while brand-new factories don't have these advantages. Their price of raw materials and also logistic is higher than existing manufacturing facilities. Compared with America as well as Canada, Vietnam do not have huge locations of prospective forestry.

What's the future of timber pellet export in Vietnam?
With even more wood pellet plants are integrated in Vietnam, their competition on basic materials will boost. With the rise of manufacturing expense, the timber pellet price will expand as well as come close to the global market stability cost. During that time, the dimension of the Vietnam pellet export field will stabilize.

There will certainly be loan consolidation in Vietnam wood pellet sector. Preponderant manufacturers will certainly acquire well-built and also well-located plants, and the less affordable plants will shut.

Freshly developed wood pellet plants will embrace world-class layout, devices, and also procedures. They will make top quality timber pellets with sustainable sources.

mini feed making machine of Vietnam wood pellet manufacturers is mosting likely to match with long-lasting agreements. More manufacturers will certainly export timber pellets to Japan according to lasting supply arrangements, and also Korea plan will develop to support long-lasting supply arrangements.



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