1/ Forest Trends Report
Wood pellet export value in the first 10 months of 2022 reached 602.7 million USD, up 81% over the same period in 2021, equivalent to nearly 146% of the total turnover in 2021.
According to a recent report by the research team of the Vietnam Timber and Forest Products Association, Forest Trends Organization, due to high demand from the Japanese and Korean markets, Vietnam’s wood pellet export volume has increased sharply in recent times.
Specifically, in the first 10 months of 2022, the export volume of wood pellets reached nearly 3.9 million tons, an increase of 34% over the same period in 2021, equivalent to more than 111% of the total export volume in 2021.
The export value of wood pellets in the first 10 months of 2022 reached 602.7 million USD, an increase of 81% over the same period in 2021, equivalent to nearly 146% of the total turnover in 2021. Notably, the export price of wood pellets has increased continuously since June 2021 and peaked at more than 170 USD/ton in October 2022, an increase of nearly 60% compared to the price in May 2021.
The volume of wood pellets exported to Japan and South Korea accounts for 95% of the total volume of wood pellets exported by Vietnam.
Of which, South Korea purchased 1.675 million tons of wood pellets from Vietnam, worth 270 million USD; the export volume of wood pellets to Japan reached 2.05 million USD; worth 303 million USD.
2/ Viet Nam wood pellet market
The Ministry of Industry and Trade estimates that Vietnam’s wood and wood product exports in October 2022 reached 1.2 billion USD, up 7.7% compared to September 2022 and up 25.9% compared to October 2021.
According to statistics from the General Department of Forestry (Ministry of Agriculture and Rural Development), there are currently about 80 enterprises nationwide participating in the production and export of wood pellets. The export value of wood pellets has continuously increased from 145 million USD in 2017 to more than 500 million USD in the first 10 months of 2022.
Exports of wood chips and wood pellets in the Asian region have also grown strongly, with the export value of wood pellets alone increasing by more than 80% compared to the same period last year due to increased demand in the main markets of Korea and Japan, in the context that these two markets continue to convert from coal-fired power sources to clean power, including biomass power.
China is also making moves to partially convert coal-fired power sources and heating systems to wood pellets, and demand for this item in China is expected to increase sharply.
Mr. Nguyen Thanh Phong, Chairman of the Wood Pellet Association of the Vietnam Timber and Forest Products Association, said: “In 2021, the volume of wood pellets exported from Vietnam reached 3.5 million tons with a turnover of more than 413 million USD. In the first 9 months of 2022, the export of this item reached nearly 3.5 million tons, reaching 542.32 million USD, accounting for 4.5% of the total export turnover of the industry”.
Looking at the data for the first 9 months of the year, Mr. Nguyen Thanh Phong emphasized: “Wood pellet exports increased by 35% in volume and 81% in value compared to the same period in 2021. Vietnam has become the second largest exporter of wood pellets in the world”.
The main source of raw materials for wood pellet production is by-products of the wood industry such as branches, tops, small wood from planted forests and scraps, excess wood… from processing facilities. Increasing production of this item helps to utilize excess materials created in the wood processing stages, while contributing to environmental protection.
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:
- Baochinhphu
- Overc Team synthesise, analyse and write articles.
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OVERC was established in Vietnam, which has 17 FTA (Free Trade Agreement).
Vietnam is one of the countries with the most FTAs in the world.
Our main activities are manufacturing and distributing Wood Pellets and Wood Waste. Our wood pellet products, which are made from Acacia veneer residual 100% or wood waste (logs, sawdust, wood chips, wood shavings,…), have been exported to many countries around the world such as Japan, Korea, EU, etc.
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