Notes

Vietnam wood pellet production and exports
Vietnam wood pellet manufacturing and also exports
In the past 7 years, Vietnam wood pellet export expands from no to around 2.75 million bunches every year, with most to Korea and also Japan. However as fish feed pellet machine , will it continue to grow? What's the pattern of Vietnam wood pellet sector?


John Swan, a procedure specialist that has actually been directing the design and also devices choice for new pellet plants in Vietnam, examined the current scenario and future pattern of Vietnam wood pellet export.

Vietnam wood pellet manufacturing gain from affordable
Wood pellets in Vietnam are generally made of the spin-offs of furnishings production. These sawdust has low wetness material and also little size. Numerous early wood pellet factories don't need drying or crushing devices. With reduced labor cost, they can save a good deal of production expense.

For a very long time, there are a lot of container cargos delivered from Korea to Vietnam and just small quantities from Vietnam to Korea. Timber pellet manufacturers can make use of the excess empty container for shipment at low cost. The transportation expense is less than $10 per heap.

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

The raw material expense is mosting likely to climb. The furnishings manufacture in Vietnam increase from 2.1 million tons to 7.2 million loads in the past ten years, with the annual development price of 13%. By comparison, the wood pellet export raises from 160,000 to 2.46 million heaps, with the annual development price of 61%. So the need for furnishings handling waste development much more than the supply.

To increase manufacturing, Vietnam makers will significantly count on forest residuals as well as logs. These products set you back higher and require peeling off, damaging, squashing as well as drying for making pellets. So the minimal price will rise up.


Vietnam timber pellet export price will raise
Most of Vietnam's wood pellets are exported to Korea and also Japan.

In the chart below, the eco-friendly line reveals the weighted cost of the top 6 wood pellet providers to Korea, as well as the red line reveals the price of Vietnam timber pellets. As Vietnam domains the Korea wood pellet market, various other 5 suppliers just use up less than 20% market share. We can find that the growth of Vietnam timber pellet price pushes up the ordinary weighted cost.

homemade wood pellet maker reflect the rise of Vietnam wood pellet rate. A lot of Japan's timber pellets are imported from Canada and also Vietnam, with Canada taking up 65% -70%. The green line reveals the weighted cost of Canada and Vietnam wood pellet export. The red line reveals Vietnam's wood pellet export cost rebound.

The development of Vietnam timber pellet industry is restricted
We can analyze the growth prospective based upon the production strength of a certain location. It describes the complete wood pellet manufacturing divided by the manufacturing area. The production area doesn't consists of the land that is not forested or is not readily available for tree harvesting.

According to stats, Vietnam wood pellet manufacturing grows rapidly, with the production strength from 8ton/squre kilometres to 13.4 ton/squre km. It has go beyond the largest wood pellet manufacturing states in America, Georgia and also north Carolina.

This procedure does not represent various other industries relying on forestry resources, like paper mills and timber items mills. Some locations have huge readily available forestry area however reduced pellet production strength. They may be prospects for brand-new wood pellet export capability.

In all locations, the very first set of wood pellet manufacturing facilities have the most effective combination of raw material delivery price as well as mill-to-port logistics, while brand-new factories do not have these benefits. Their price of basic materials and also logistic is greater than existing factories. Compared with America as well as Canada, Vietnam don't have huge areas of possible forestry.

What's the future of wood pellet export in Vietnam?
With even more wood pellet plants are integrated in Vietnam, their competition on basic materials will certainly boost. With the rise of production price, the timber pellet price will certainly expand and also come close to the international market equilibrium rate. During that time, the dimension of the Vietnam pellet export field will certainly support.

There will certainly be consolidation in Vietnam timber pellet sector. Superior suppliers will acquire durable and also well-located plants, as well as the much less competitive plants will shut.

Freshly developed wood pellet plants will certainly take on first-rate layout, devices, and operations. They will make high-grade wood pellets with sustainable resources.

The ability of Vietnam wood pellet manufacturers is going to match with long-term arrangements. Extra producers will export wood pellets to Japan according to long-lasting supply agreements, as well as Korea policy will certainly progress to support long-term supply contracts.


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