Notes

Vietnam wood pellet production and exports
Vietnam wood pellet production as well as exports
In the past 7 years, Vietnam timber pellet export grows from zero to around 2.75 million bunches every year, with most to Korea and Japan. Yet as the cost advantage lessen, will it remain to grow? What's the fad of Vietnam timber pellet industry?

fish food extruder , a procedure expert who has been directing the design and also devices option for new pellet plants in Vietnam, examined the current circumstance and also future fad of Vietnam timber pellet export.

Vietnam timber pellet manufacturing gain from inexpensive
Timber pellets in Vietnam are generally made from the by-products of furniture manufacturing. These sawdust has low moisture web content as well as little size. Numerous early timber pellet factories don't need drying out or squashing machines. With low labor expense, they can save a great deal of production price.

For a long time, there are a large number of container cargos delivered from Korea to Vietnam and just small quantities from Vietnam to Korea. Wood pellet makers can make use of the excess empty container for delivery at inexpensive. The transport cost is lower than $10 per lot.

Vietnam wood pellet manufacturing cost will rise
The delivery price is mosting likely to rise. The quick development of freights from Vietnam to Korea lower the excess containers. The shipping cost will rise to $20/ton from Vietnam to Japan.

The raw product cost is going to rise. The furnishings manufacture in Vietnam rise from 2.1 million heaps to 7.2 million bunches in the past 10 years, with the yearly development rate of 13%. By comparison, the timber pellet export enhances from 160,000 to 2.46 million tons, with the annual growth price of 61%. So the need for furniture processing waste development a lot more than the supply.

To expand manufacturing, Vietnam manufacturers will increasingly rely upon woodland residuals as well as logs. These materials cost greater and require peeling off, chipping, squashing as well as drying for making pellets. So the minimal cost will certainly rise up.

Vietnam wood pellet export rate will certainly enhance
Most of Vietnam's wood pellets are exported to Korea as well as Japan.

In wood pellet maker diy , the green line reveals the weighted price of the leading 6 timber pellet suppliers to Korea, and also the red line reveals the rate of Vietnam timber pellets. As Vietnam domains the Korea timber pellet market, other 5 providers just occupy less than 20% market share. underwater pelletizer can locate that the growth of Vietnam wood pellet rate raises the average weighted price.

Japan timber pellet market likewise mirror the rise of Vietnam timber pellet price. The majority of Japan's timber pellets are imported from Canada as well as Vietnam, with Canada taking up 65% -70%. The eco-friendly line shows the heavy rate of Canada as well as Vietnam timber pellet export. The red line reveals Vietnam's wood pellet export cost rebound.

The growth of Vietnam timber pellet industry is limited
We can examine the development potential based on the manufacturing intensity of a certain area. It refers to the complete timber pellet manufacturing split by the manufacturing location. The manufacturing area doesn't includes the land that is not forested or is not offered for tree harvesting.

According to statistics, Vietnam wood pellet production grows rapidly, with the manufacturing strength from 8ton/squre km to 13.4 ton/squre kilometres. It has surpass the largest wood pellet manufacturing states in America, Georgia and also north Carolina.

This step doesn't represent other sectors depending upon forestry resources, like paper mills and also wood products mills. Some areas have large readily available forestry location but low pellet manufacturing strength. They might be prospects for new wood pellet export capability.

In all areas, the first set of timber pellet manufacturing facilities have the very best combination of raw material shipment cost as well as mill-to-port logistics, while brand-new manufacturing facilities do not have these benefits. Their cost of resources as well as logistic is more than existing manufacturing facilities. Compared with America as well as Canada, Vietnam don't have huge locations of possible forestry.


What's the future of timber pellet export in Vietnam?
With even more wood pellet plants are constructed in Vietnam, their competitors on basic materials will certainly boost. With the rise of production expense, the timber pellet cost will expand as well as approach the global market balance cost. Back then, the dimension of the Vietnam pellet export sector will certainly maintain.

There will be combination in Vietnam wood pellet industry. Superior makers will get well-built as well as well-located plants, as well as the less affordable plants will close.

Newly developed wood pellet plants will adopt first-rate style, devices, and also procedures. They will certainly make high-grade wood pellets with sustainable sources.

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



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