Notes

Vietnam wood pellet manufacturing and also exports<br>
In the past 7 years, Vietnam timber pellet export grows from absolutely no to around 2.75 million bunches annually, with most to Korea and Japan. Yet as the cost benefit lessen, will it remain to grow? What's mandoka pellet press of Vietnam wood pellet market?



John Swan, an operation professional who has been guiding the style and equipment choice for new pellet plants in Vietnam, examined the current circumstance and future fad of Vietnam timber pellet export.



Vietnam timber pellet production benefits from affordable

Wood pellets in Vietnam are mainly constructed from the by-products of furnishings production. These sawdust has low moisture material as well as little dimension. Many early timber pellet manufacturing facilities do not require drying out or squashing machines. With reduced labor cost, they can conserve a large amount of manufacturing cost.



For a very long time, there are a large number of container cargos shipped from Korea to Vietnam and only small quantities from Vietnam to Korea. Timber pellet manufacturers can use the excess vacant container for shipment at low cost. The transportation cost is less than $10 per load.



Vietnam timber pellet production expense will certainly climb

The shipping cost is going to climb. The rapid growth of cargos from Vietnam to Korea reduce the excess containers. The shipping price will rise to $20/ton from Vietnam to Japan.



The raw product expense is going to rise. The furniture manufacture in Vietnam boost from 2.1 million heaps to 7.2 million lots in the past ten years, with the yearly development price of 13%. By contrast, the timber pellet export raises from 160,000 to 2.46 million loads, with the yearly development rate of 61%. So the need for furnishings processing waste development a lot more than the supply.



To increase production, Vietnam suppliers will progressively rely upon woodland residuals and logs. These products set you back greater and also require peeling off, cracking, crushing and drying for making pellets. So the minimal cost will certainly rise up.



Vietnam timber pellet export cost will boost

Most of Vietnam's timber pellets are exported to Korea and also Japan.




In the chart below, the eco-friendly line reveals the weighted price of the top 6 timber pellet providers to Korea, and the red line reveals the cost of Vietnam timber pellets. As Vietnam domain names the Korea timber pellet market, other 5 suppliers just occupy less than 20% market share. We can locate that the growth of Vietnam wood pellet cost rises the typical weighted price.




Japan wood pellet market also mirror the increase of Vietnam timber pellet cost. The majority of Japan's wood pellets are imported from Canada and Vietnam, with Canada occupying 65% -70%. The green line reveals the weighted cost of Canada and also Vietnam timber pellet export. The red line reveals Vietnam's timber pellet export cost rebound.



The growth of Vietnam timber pellet sector is restricted

We can examine the growth potential based upon the production strength of a certain area. It refers to the overall timber pellet manufacturing divided by the production location. The manufacturing location doesn't includes 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 manufacturing strength from 8ton/squre km to 13.4 ton/squre kilometres. chicken feed pellet machine has go beyond the biggest timber pellet production states in America, Georgia and north Carolina.



This action does not account for various other sectors depending on forestry sources, like paper mills and also timber products mills. Some locations have huge available forestry area but low pellet manufacturing strength. They may be prospects for brand-new wood pellet export capacity.



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



What's the future of timber pellet export in Vietnam?

With even more wood pellet plants are constructed in Vietnam, their competition on resources will certainly raise. With the increase of manufacturing expense, the wood pellet rate will certainly expand and come close to the global market equilibrium rate. At that time, the dimension of the Vietnam pellet export sector will certainly support.



There will certainly be consolidation in Vietnam timber pellet sector. Preponderant suppliers will certainly acquire strong and well-located plants, and the less affordable plants will certainly shut.



Newly constructed timber pellet plants will certainly take on first-rate layout, equipment, and also operations. They will make top quality timber pellets with sustainable resources.



The ability of Vietnam wood pellet producers is going to match with long-lasting agreements. richi pellet machine will certainly export timber pellets to Japan according to lasting supply agreements, and also Korea policy will develop to support long-lasting supply contracts.


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