Notes

Vietnam wood pellet production and exports
Vietnam timber pellet manufacturing and also exports
In the past 7 years, Vietnam wood pellet export grows from zero to around 2.75 million lots yearly, with the majority of to Korea and also Japan. But as small feed pellet machine diminish, will it continue to grow? What's the fad of Vietnam wood pellet market?

John Swan, a procedure expert that has actually been directing the design and also tools choice for new pellet plants in Vietnam, examined the current circumstance and also future trend of Vietnam wood pellet export.

Vietnam timber pellet manufacturing benefits from low cost
Wood pellets in Vietnam are mostly made of the spin-offs of furniture production. These sawdust has reduced moisture web content and small size. Many early wood pellet manufacturing facilities don't need drying out or crushing equipments. With low labor price, they can save a good deal of production cost.

For richi pellet machine , there are a lot of container cargos shipped from Korea to Vietnam as well as only small quantities from Vietnam to Korea. Timber pellet makers can take advantage of the excess vacant container for shipment at inexpensive. The transport expense is less than $10 per heap.

Vietnam timber pellet manufacturing expense will increase
The shipping expense is mosting likely to climb. The rapid growth of cargos from Vietnam to Korea decrease the excess containers. The shipping expense will certainly rise to $20/ton from Vietnam to Japan.

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

To increase production, Vietnam makers will increasingly rely upon woodland residuals and also logs. These materials set you back higher and require peeling off, damaging, crushing and drying out for making pellets. So the marginal expense will rise up.

Vietnam timber pellet export price will certainly raise
Most of Vietnam's timber pellets are exported to Korea and also Japan.



In the graph below, the green line reveals the weighted rate of the top 6 wood pellet providers to Korea, and also the red line shows the rate of Vietnam wood pellets. As Vietnam domains the Korea wood pellet market, various other 5 vendors only take up less than 20% market share. We can find that the growth of Vietnam timber pellet rate rises the typical weighted cost.

Japan wood pellet market additionally show the increase of Vietnam timber pellet price. Most of Japan's wood pellets are imported from Canada and also Vietnam, with Canada occupying 65% -70%. The environment-friendly line reveals the weighted cost of Canada as well as Vietnam wood pellet export. The red line shows Vietnam's timber pellet export cost rebound.

The growth of Vietnam wood pellet market is restricted
We can evaluate the growth possible based on the manufacturing intensity of a specific area. It describes the total wood pellet production split by the production area. The manufacturing area doesn't includes the land that is not forested or is not offered for tree harvesting.

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

This procedure doesn't account for other markets depending upon forestry resources, like paper mills and also wood products mills. Some locations have large available forestry area yet reduced pellet production intensity. They might be candidates for brand-new timber pellet export ability.

In all areas, the initial batch of timber pellet manufacturing facilities have the most effective mix of resources delivery cost as well as mill-to-port logistics, while new factories do not have these benefits. Their price of resources as well as logistic is more than existing manufacturing facilities. Compared to America and also Canada, Vietnam do not have big locations of possible forestry.

What's the future of timber pellet export in Vietnam?
With more wood pellet plants are constructed in Vietnam, their competitors on raw materials will enhance. With the boost of manufacturing expense, the wood pellet price will certainly expand as well as come close to the worldwide market stability cost. Back then, the size of the Vietnam pellet export sector will maintain.

There will certainly be combination in Vietnam wood pellet industry. Superior suppliers will get strong as well as well-located plants, and also the less competitive plants will close.

Freshly constructed wood pellet plants will certainly take on world-class style, devices, as well as procedures. They will make top quality timber pellets with lasting sources.

The capability of Vietnam timber pellet producers is mosting likely to match with long-lasting contracts. Much more manufacturers will certainly export wood pellets to Japan according to long-term supply contracts, and Korea plan will certainly evolve to sustain long-term supply agreements.


Website: https://feedpelletpress.com/how-to-make-horse-feed-pellets/