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Home » US Wood Pellet Exports Increase in 2023 , Canadian Wood Pellet Production and Exports Decline

US Wood Pellet Exports Increase in 2023 , Canadian Wood Pellet Production and Exports Decline

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  1. USDA: US wood pellet exports reach 9.54 million metric tons in 2023
  • The U.S. exported 1.01 million metric tons of wood pellets in December, according to data released by the USDA Foreign Agricultural Service on Feb. 7. Total exports for the full year reached 9.54 million metric tons. 
  • The 1.01 million metric tons of wood pellets exported in December was up when compared to both the 655,649.2 metric tons of exports reported for the previous month and the 939,453.1 metric tons exported in December 2022.
  • The U.S. exported wood pellets to approximately 16 countries in December. The U.K. was the top destination for U.S. wood pellet exports at 653,970.7 metric tons, followed by Japan at 130,830.2 metric tons and Denmark at 126,693.8 metric tons. 
  • The value of U.S. wood pellet exports reached $181.34 million in December, up from $116.84 million in November and $157.95 million in December of the previous year.
  • Total wood pellet exports for 2023 reached 9.54 million metric tons at value of $1.75 billion, compared to 9.01 million metric tons exported in 2022 at a value of $1.56 billion. 

2. Canadian wood pellet production, exports down in 2023

  • A report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network estimates that Canadian wood pellet production was down 6 percent in 2023, with exports down 14 percent. 
  • The expected decline in Canada’s wood pellet production is attributed to the closure of pellet mills, reduction in allowable cut and a high-activity wildfire season. The decline in exports is expected to result from reduced production coupled with diminished demand from South Korea and the U.K. for Canadian wood pellets. Imports, however, are expected to be up on a slight growth in domestic demand. 
  • According to the report, Canada had 45 wood pellet plants as of 2023 with a combined 4.72 million metric tons of capacity, down from 47 plants with a combined 5.05 million metric tons of capacity in 2022 and 46 plants with 4.86 million metric tons of capacity in 2021. Capacity use for 2023 was estimated at 73.1 percent, up from 72.2 percent the previous year and 72.1 percent in 2021.
  • As of 2023, 44.3 percent of Canada’s wood pellet production capacity was located in British Columbia, with 21 percent in Quebec, 16 percent in Alberta, 8.8 percent in New Brunswick, 6.1 percent in Ontario and the remaining 3.7 percent located in other areas of the country. 
  • Canadian producers manufactured an estimated 3.45 million metric tons of wood pellets last year, down from 3.65 million metric tons in 2022 and 3.5 million metric tons in 2021. Exports were at 3 million metric tons, down from 3.49 million metric tons the previous year and 3.15 million metric tons in 2021. British Columbia accounted for 73% of Canada’s wood pellets in 2022, followed by Quebec at 16% , New Brunswick at 9% and the rest of Canada at 3% .
  • In 2022, approximately 48% of Canadian wood pellet exports were destined for Japan. The U.K. accounted for approximately 38% of exports, followed by South Korea at 15%, the U.S. at 7%, Denmark at 4%, the Netherlands at 3% and all other countries at 6% .  
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  • Canadian wood pellet imports for 2023 are estimated at 45,000 metric tons, increase from 31,000 metric ton in 2022 and 29,000 metric tons in 2021. Canada consumed approximately 617,000 metric tons of wood pellets last year, up from 600,000 metric tons in 2022 and 500,000 metric tons in 2021.
  • British Columbia and Ontario each accounted for 42 percent of Canadian wood pellet imports in 2023. Manitoba, Saskatchewan and other areas of Canada accounted for 7 percent, 6 percent and 3 percent of imports, respectively. Canadian wood pellet imports typically consist of bagged pellets used in the residential heating market, according to the report. Virtutally all of the country’s imported wood pellets are sourced from the U.S.

Conclusions 

  • The United States significantly increased its wood pellet exports in 2023 compared to the previous year. The UK remained the primary market for US wood pellets.
  • Canadian Wood Pellet Production and Exports Decline
  • In contrast, Canada experienced a decrease in both wood pellet production and exports in 2023. This decline was attributed to factors such as mill closures, reduced allowable cuts, wildfires, and decreased demand from key markets.

Note: The information in this article is for reference only and may change depending on the manufacturer and source of raw materials. For the most accurate information, you should consult experts, wood pellet suppliers or contact Overc.vn to answer your questions and problems related to wood pellets and wood chips.

Source: 

  • Biomass Magazine
  • Overc Team synthesise, analyse and write articles.

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