Notes

Vietnam wood pellet manufacturing and exports<br>
In pellet press machine for sale , Vietnam wood pellet export grows from absolutely no to around 2.75 million tons every year, with the majority of to Korea as well as Japan. Yet as the cost benefit lessen, will it remain to expand? What's the pattern of Vietnam timber pellet sector?



John Swan, a procedure specialist that has actually been guiding the design and tools selection for new pellet plants in Vietnam, analyzed the existing situation and also future fad of Vietnam wood pellet export.




Vietnam timber pellet manufacturing gain from inexpensive


Wood pellets in Vietnam are generally constructed from the by-products of furniture manufacturing. These sawdust has low dampness content as well as tiny size. Numerous very early wood pellet manufacturing facilities don't require drying or squashing machines. With reduced manual pellet maker , they can conserve a good deal of manufacturing expense.



For a long period of time, there are a great deal of container freights delivered from Korea to Vietnam and also just small quantities from Vietnam to Korea. Wood pellet makers can utilize the excess vacant container for delivery at low cost. The transportation price is less than $10 per lot.



Vietnam timber pellet production price will increase

The delivery expense is going to increase. The rapid growth of cargos from Vietnam to Korea decrease the excess containers. The delivery expense will rise to $20/ton from Vietnam to Japan.



The raw product expense is mosting likely to rise. The furnishings manufacture in Vietnam rise from 2.1 million bunches to 7.2 million bunches in the past 10 years, with the annual development price of 13%. By comparison, the wood pellet export enhances from 160,000 to 2.46 million tons, with the yearly growth price of 61%. So the need for furnishings handling waste development much more than the supply.



To expand production, Vietnam makers will increasingly depend on woodland residuals and logs. These products cost higher as well as need peeling, breaking, squashing and also drying out for making pellets. So the low price will rise.



Vietnam wood pellet export price will increase

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



In the graph below, the eco-friendly line shows the heavy price of the leading 6 timber pellet suppliers to Korea, as well as the red line reveals the cost of Vietnam wood pellets. As Vietnam domain names the Korea timber pellet market, other 5 suppliers only occupy less than 20% market share. We can locate that the growth of Vietnam timber pellet cost raises the typical heavy cost.



Japan wood pellet market also mirror the surge of Vietnam timber pellet price. A lot of Japan's timber pellets are imported from Canada as well as Vietnam, with Canada occupying 65% -70%. The green line shows the weighted rate of Canada and Vietnam timber pellet export. The red line shows Vietnam's wood pellet export price rebound.



The growth of Vietnam timber pellet sector is restricted

We can evaluate the development prospective based upon the production intensity of a specific location. It describes the total wood pellet manufacturing separated by the production area. The production area does not 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 exceed the largest wood pellet manufacturing states in America, Georgia as well as north Carolina.



This action doesn't make up other markets relying on forestry sources, like paper mills as well as wood products mills. Some locations have huge available forestry area however low pellet manufacturing strength. They might be prospects for brand-new wood pellet export capacity.



In all areas, the initial batch of wood pellet manufacturing facilities have the most effective mix of basic material delivery price and also mill-to-port logistics, while new manufacturing facilities do not have these benefits. Their price of resources and also logistic is greater than existing factories. Compared to America and Canada, Vietnam don't have large locations of possible forestry.



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

With more wood pellet plants are integrated in Vietnam, their competitors on raw materials will boost. With the boost of production expense, the timber pellet price will grow and also approach the worldwide market stability price. Back then, the size of the Vietnam pellet export field will certainly stabilize.



There will be debt consolidation in Vietnam wood pellet market. Preponderant suppliers will certainly obtain strong and also well-located plants, as well as the less competitive plants will close.



Newly built timber pellet plants will certainly take on world-class design, equipment, and procedures. They will certainly make high-quality wood pellets with sustainable sources.



The capacity of Vietnam timber pellet producers is mosting likely to match with lasting arrangements. Extra producers will export timber pellets to Japan according to lasting supply agreements, and Korea plan will advance to support long-term supply agreements.


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