Space remains for wood pellet exports to grow

Vietnam’s exports of wood pellets reached over 2 million tons worth nearly $325 million in the first half of this year, down 12.3 per cent and 8.2 per cent, respectively, year-on-year.

The number of businesses exporting wood pellets has also fallen, from 109 in 2022 to 88 in the first seven months of 2023.

It has been reported that global demand for wood pellets may reach $31 billion by 2030, revealing there is much space for Vietnam’s wood pellet industry to grow.

South Korea and Japan are Vietnam’s two largest markets for wood pellet exports. In the first half of this year, Japan imported more than 1.16 million tons worth over $195 million from Vietnam, up 5.65 per cent in volume and 28.88 per cent in value compared to the same period last year.

South Korea, meanwhile, imported around 840,000 tons worth nearly $116 million, a decline of 33 per cent and 43 per cent, respectively.

The export price of wood pellets increased to $161.21 per ton in 2022 from $117.87 per ton in 2021, according to the Managing Director for Forest Policy, Trade, and Finance at Forest Trends, To Xuan Phuc.

However, he went on, after it reached its peak of $189 per ton in December 2022, the export price fell to below $136 per ton, or nearly 30 per cent, in June 2023.