Notes

Vietnam wood pellet manufacturing and also exports<br>
In the past 7 years, Vietnam wood pellet export expands from no to around 2.75 million loads yearly, with a lot of to Korea and Japan. However as the price advantage diminish, will it remain to expand? What's the fad of Vietnam wood pellet market?



John Swan, a procedure expert that has been routing the style and equipment selection for brand-new pellet plants in Vietnam, evaluated the current scenario as well as future trend of Vietnam timber pellet export.



Vietnam timber pellet manufacturing gain from affordable

Timber pellets in Vietnam are generally made of the byproducts of furniture production. chicken feed pellet machine has low wetness web content and also little dimension. Many very early wood pellet manufacturing facilities do not need drying out or crushing makers. With reduced labor cost, they can save a great deal of manufacturing expense.



For a long period of time, there are a lot of container cargos shipped from Korea to Vietnam as well as only small quantities from Vietnam to Korea. Timber pellet makers can take advantage of the excess vacant container for shipment at affordable. The transport expense is less than $10 per lot.



Vietnam timber pellet manufacturing price will certainly rise

The shipping cost is going to rise. The fast growth of cargos from Vietnam to Korea minimize the excess containers. The delivery cost will rise to $20/ton from Vietnam to Japan.



The raw product cost is going to increase. The furnishings manufacture in Vietnam increase from 2.1 million loads to 7.2 million lots in the past one decade, with the annual development rate of 13%. By comparison, the timber pellet export boosts from 160,000 to 2.46 million lots, with the yearly development price of 61%. So the need for furniture processing waste growth much higher than the supply.



To expand production, Vietnam producers will significantly depend on woodland residuals and logs. These products set you back higher and require peeling off, breaking, crushing and also drying for making pellets. So the minimal price will certainly rise up.



Vietnam wood pellet export rate will increase

The majority 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 wood pellet providers to Korea, and the red line reveals the cost of Vietnam wood pellets. As Vietnam domains the Korea wood pellet market, various other 5 suppliers just take up less than 20% market share. richi pellet can find that the growth of Vietnam wood pellet cost raises the average weighted cost.



Japan wood pellet market likewise mirror the surge of Vietnam wood pellet cost. Most of Japan's timber pellets are imported from Canada as well as Vietnam, with Canada using up 65% -70%. The green line shows the heavy price of Canada and also Vietnam timber pellet export. The red line shows Vietnam's wood pellet export rate rebound.



The development of Vietnam timber pellet market is limited

We can evaluate the development prospective based upon the manufacturing strength of a certain location. It refers to the overall wood pellet production divided by the manufacturing area. The manufacturing area doesn't consists of the land that is not forested or is not offered for tree harvesting.



According to stats, Vietnam wood pellet production grows rapidly, with the production strength from 8ton/squre km to 13.4 ton/squre km. It has exceed the biggest wood pellet manufacturing states in America, Georgia as well as north Carolina.



This procedure doesn't make up various other industries relying on forestry resources, like paper mills and also timber products mills. mini poultry feed making machine have huge offered forestry area yet reduced pellet production strength. They might be prospects for new timber pellet export ability.




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



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

With more wood pellet plants are built in Vietnam, their competition on basic materials will certainly increase. With the increase of manufacturing price, the wood pellet rate will certainly expand as well as come close to the international market balance price. Back then, the dimension of the Vietnam pellet export industry will support.



There will certainly be consolidation in Vietnam wood pellet market. Preponderant suppliers will acquire strong and well-located plants, as well as the much less competitive plants will shut.



Recently built timber pellet plants will adopt first-rate style, equipment, and operations. They will make top notch timber pellets with sustainable resources.



The capability of Vietnam timber pellet manufacturers is mosting likely to match with long-term arrangements. More producers will export wood pellets to Japan according to long-term supply contracts, as well as Korea policy will certainly advance to support lasting supply arrangements.


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