Notes

Vietnam wood pellet production as well as exports<br>
In the past 7 years, Vietnam wood pellet export grows from no to around 2.75 million lots annually, with most to Korea and Japan. Yet as the cost benefit reduce, will it continue to expand? What's the pattern of Vietnam wood pellet sector?



John Swan, a procedure specialist who has actually been directing the style and also equipment selection for new pellet plants in Vietnam, examined the present circumstance and future fad of Vietnam timber pellet export.



Vietnam wood pellet production gain from inexpensive

Timber pellets in Vietnam are mainly made from the by-products of furnishings manufacturing. These sawdust has low dampness content and tiny size. Numerous very early wood pellet manufacturing facilities do not need drying or squashing makers. With low labor price, they can conserve a great deal of manufacturing price.




For a very long time, there are a lot of container freights shipped from Korea to Vietnam and also only small quantities from Vietnam to Korea. Timber pellet manufacturers can take advantage of the excess vacant container for delivery at inexpensive. pellet making machine for poultry feed is less than $10 per ton.



Vietnam timber pellet manufacturing cost will certainly rise

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



The raw material cost is mosting likely to rise. The furnishings manufacture in Vietnam increase from 2.1 million lots to 7.2 million loads in the past one decade, with the yearly development rate of 13%. By comparison, the wood pellet export boosts from 160,000 to 2.46 million bunches, with the yearly development rate of 61%. So the demand for furniture handling waste growth a lot greater than the supply.



To broaden manufacturing, Vietnam producers will progressively count on woodland residuals as well as logs. These products set you back greater and also need peeling, chipping, squashing and drying for making pellets. So the minimal price will certainly rise up.



Vietnam timber pellet export rate will increase

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



In the chart below, the eco-friendly line reveals the weighted cost of the top 6 timber pellet suppliers to Korea, and also the red line shows the cost of Vietnam wood pellets. As Vietnam domains the Korea timber pellet market, various other 5 distributors just occupy less than 20% market share. We can locate that the development of Vietnam timber pellet price rises the ordinary heavy price.



Japan timber pellet market also mirror the surge of Vietnam timber pellet rate. The majority of Japan's wood pellets are imported from Canada and Vietnam, with Canada taking up 65% -70%. The environment-friendly line shows the weighted rate of Canada and also Vietnam timber pellet export. The red line reveals Vietnam's timber pellet export rate rebound.



The development of Vietnam timber pellet market is limited

We can analyze the development potential based on the manufacturing strength of a specific location. It describes the total timber pellet manufacturing separated by the production location. The manufacturing location does not includes the land that is not forested or is not offered for tree harvesting.



According to data, Vietnam timber pellet production grows rapidly, with the production strength from 8ton/squre kilometres to 13.4 ton/squre kilometres. sawdust pellet press machine has go beyond the largest wood pellet manufacturing states in America, Georgia as well as north Carolina.



This step does not represent various other industries depending on forestry sources, like paper mills and also wood products mills. Some areas have large offered forestry location yet low pellet manufacturing intensity. They may be candidates for new timber pellet export ability.



In all areas, the first batch of timber pellet factories have the most effective mix of raw material distribution cost as well as mill-to-port logistics, while new factories don't have these benefits. Their cost of raw materials and logistic is more than existing factories. Compared to America and also Canada, Vietnam don't have huge locations of prospective 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 boost. With the rise of production expense, the timber pellet cost will certainly grow and approach the global market balance cost. During that time, the size of the Vietnam pellet export industry will stabilize.



There will be combination in Vietnam wood pellet sector. Superior makers will certainly get sturdy and well-located plants, and the much less affordable plants will close.



Recently developed wood pellet plants will adopt world-class design, devices, and also operations. They will certainly make high-quality wood pellets with lasting sources.



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


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