Notes

Vietnam timber pellet production and exports<br>
In the past 7 years, Vietnam timber pellet export expands from absolutely no to around 2.75 million loads every year, with a lot of to Korea and also Japan. Yet as the cost advantage reduce, will it continue to expand? What's the pattern of Vietnam wood pellet industry?



John Swan, an operation professional who has actually been directing the layout as well as tools choice for new pellet plants in Vietnam, assessed the current situation and also future fad of Vietnam wood pellet export.



Vietnam timber pellet manufacturing benefits from affordable

Wood pellets in Vietnam are generally constructed from the byproducts of furniture production. These sawdust has low moisture web content and little dimension. Many very early wood pellet manufacturing facilities don't need drying or squashing makers. With low labor expense, they can save a large amount of production price.



For a very long time, there are a large number of container cargos delivered from Korea to Vietnam as well as just small quantities from Vietnam to Korea. Timber pellet producers can use the excess vacant container for shipment at affordable. The transportation price is less than $10 per load.




Vietnam wood pellet production price will certainly climb

The shipping price is mosting likely to increase. The fast growth of freights from Vietnam to Korea minimize the excess containers. The delivery cost will rise to $20/ton from Vietnam to Japan.



The raw material price is going to increase. visit site in Vietnam increase from 2.1 million heaps to 7.2 million tons in the past 10 years, with the yearly development rate of 13%. By contrast, the wood pellet export enhances from 160,000 to 2.46 million loads, with the yearly development price of 61%. So the need for furnishings handling waste growth much higher than the supply.



To increase manufacturing, Vietnam makers will progressively depend on forest residuals as well as logs. These materials cost higher as well as require peeling, cracking, crushing and also drying for making pellets. So the low cost will certainly rise up.



Vietnam wood pellet export rate will enhance

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



In the graph below, the eco-friendly line shows the weighted cost of the leading 6 timber pellet suppliers to Korea, and also the red line shows the cost of Vietnam timber pellets. As used pellet press domains the Korea wood pellet market, other 5 providers only occupy less than 20% market share. We can locate that the development of Vietnam timber pellet rate rises the average weighted cost.



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



The development of Vietnam timber pellet market is restricted

We can evaluate the development potential based upon the production strength of a specific area. It refers to the total timber pellet production separated by the manufacturing area. The manufacturing location doesn't includes the land that is not forested or is not readily available for tree harvesting.



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




This measure doesn't make up other industries depending upon forestry sources, like paper mills and wood items mills. Some locations have big offered forestry location yet low pellet manufacturing intensity. They might be candidates for new wood pellet export capability.



In all locations, the initial batch of timber pellet factories have the best mix of basic material delivery expense and also mill-to-port logistics, while new manufacturing facilities don't have these benefits. Their cost of raw materials and also logistic is higher than existing manufacturing facilities. Compared with America and Canada, Vietnam don't have huge locations of potential forestry.



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

With more timber pellet plants are built in Vietnam, their competitors on basic materials will certainly enhance. With the rise of manufacturing expense, the timber pellet cost will grow and come close to the international market stability cost. Back then, the size of the Vietnam pellet export industry will certainly maintain.



There will certainly be loan consolidation in Vietnam wood pellet market. Superior suppliers will certainly get strong as well as well-located plants, and the much less affordable plants will close.



Recently developed timber pellet plants will certainly embrace first-rate layout, equipment, and also procedures. They will certainly make high-quality timber pellets with lasting resources.



The capacity of Vietnam timber pellet producers is mosting likely to match with lasting arrangements. More producers will export wood pellets to Japan according to long-lasting supply agreements, and Korea policy will certainly progress to sustain long-term supply arrangements.


Read More: https://rajeshrana.net/fertilizer-pelletizer-machine/