Notes

Vietnam wood pellet manufacturing as well as exports<br>
In the past 7 years, Vietnam timber pellet export grows from absolutely no to around 2.75 million lots each year, with most to Korea as well as Japan. Yet as the price advantage lessen, will it remain to expand? What's the pattern of Vietnam wood pellet sector?



John Swan, a procedure expert who has actually been directing the layout and also equipment choice for new pellet plants in Vietnam, assessed the existing circumstance and also future trend of Vietnam wood pellet export.



Vietnam timber pellet production benefits from low cost

Wood pellets in Vietnam are mainly constructed from the by-products of furnishings production. These sawdust has low moisture material and little size. A lot of early timber pellet manufacturing facilities do not require drying or crushing equipments. With low labor cost, they can save a lot of manufacturing expense.



For a long period of time, there are a lot of container freights shipped from Korea to Vietnam and also only small quantities from Vietnam to Korea. Wood pellet suppliers can take advantage of the excess empty container for shipment at affordable. The transport cost is less than $10 per lot.



Vietnam wood pellet production cost will certainly increase

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



The raw material price is going to climb. The furniture manufacture in Vietnam increase from 2.1 million heaps to 7.2 million loads in the past ten years, with the yearly development rate of 13%. By contrast, the timber pellet export raises from 160,000 to 2.46 million loads, with the annual growth rate of 61%. So the need for furnishings handling waste development much higher than the supply.



To increase manufacturing, Vietnam suppliers will significantly depend on forest residuals as well as logs. grain pellet machine for sale cost greater and also require peeling, chipping, crushing and also drying for making pellets. So the low price will certainly rise up.



Vietnam timber pellet export rate will boost

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




In the graph below, the green line shows the heavy cost of the leading 6 wood pellet suppliers to Korea, and also the red line reveals the cost of Vietnam timber pellets. As Vietnam domain names the Korea wood pellet market, other 5 suppliers only use up less than 20% market share. We can find that the growth of Vietnam wood pellet cost rises the average heavy rate.



Japan wood pellet market additionally mirror the increase of Vietnam wood pellet cost. A lot of Japan's wood pellets are imported from Canada and also Vietnam, with Canada using up 65% -70%. home wood pellet machine -friendly line reveals the heavy rate of Canada as well as Vietnam wood pellet export. The red line shows Vietnam's wood pellet export cost rebound.




The development of Vietnam timber pellet market is restricted

We can assess the growth potential based on the production strength of a certain area. It refers to the total wood pellet production split by the manufacturing area. The production location doesn't consists of the land that is not forested or is not available for tree harvesting.



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



This action doesn't represent other industries depending upon forestry resources, like paper mills as well as wood items mills. Some locations have large offered forestry area but low pellet manufacturing intensity. They may be prospects for brand-new wood pellet export capacity.



In all areas, the very first set of timber pellet manufacturing facilities have the best combination of resources delivery expense and mill-to-port logistics, while new manufacturing facilities don't have these advantages. Their cost of resources as well as logistic is greater than existing manufacturing facilities. Compared with America and Canada, Vietnam do not have large areas of possible 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 boost. With the rise of manufacturing price, the timber pellet rate will grow and also come close to the global market balance price. Back then, the dimension of the Vietnam pellet export sector will maintain.



There will certainly be debt consolidation in Vietnam timber pellet industry. Preponderant suppliers will certainly obtain sturdy and well-located plants, and the much less competitive plants will certainly shut.



Newly built wood pellet plants will certainly embrace world-class style, devices, and operations. They will make top notch timber pellets with sustainable sources.



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


Website: https://www.vostexpress.org/biomass-pellet-mill-for-sale/