Today, wood chips are favored by many customers with their high applicability and reasonable price. The Vietnamese market is considered a developed land for this industry. Read the article below to learn about wood chip prices.
Why is the price of wood chips price increasing rapidly?
Fuel markets vary with local supply and demand throughout the South, but delivery prices of $14 to $19 a ton are everyday (Timber Mart South 2006). Westbrook predicts production costs will be $11/ton or more.
The global wood chips market will reach $8.81 billion in 2021 and is expected to reach $13.11 billion by 2027, growing at a CAGR of 11.50% from 2022 to 2027.
Two weeks ago, the leader of a wood chip processing company in Phu Tai Industrial Park (Quy Nhon, Binh Dinh) said that the price is at the highest level, purchasing 16,000-1.65 million VND / ton of fresh acacia.
In addition, due to the conflict in Russia and Ukraine, the fuel demand of countries in the world is severely lacking, and the need for purchasing wood pellets for processing has increased sharply. This makes wood suppliers from the EU forced to retain a part of raw wood to make up for the volume of timber imported from Russia, thereby announcing an increase in export prices of natural wood to partners (+20~ 60% over the same period). As a result, Vietnam’s timber imports from other markets also face many difficulties.
Domestic producers have been forced to look to alternative domestic wood sources to minimize the impact of this price increase.
However, the capacity of domestic wood supply is still minimal. Because the proportion of planted forest wood used for furniture processing is still low, accounting for only 30-40% of the total amount of timber harvested, the rest is about 60-70%, mainly for producing wood chips and pellets. Therefore, businesses can only use domestic wood to replace some product parts.
The reason is that the price of woodchips increased sharply, causing the exploitation and purchasing of acacia to produce wood chips massively. Difficulties in accessing input wood supply make it impossible for many businesses to continue receiving new orders, and even some have to suspend production. In addition, high inflation in the US negatively impacts the demand for imported wood products, as non-essential spending is tightened compared to before.
On the other hand, the cost of wood chips has been promoted. However, compared to the cost of different types of wood, the price of wood chips is still at a reasonable level.
Classification of wood chips
Chipboard is usually divided into a familiar and moisture-resistant wood core.
- Wood core is a standard manufactured type that usually uses wood chips and specialized adhesives then pressed. Usually has a light yellowish color of the wood.
- Moisture-resistant wood core will be added with melamine, gypsum, or cement moisture-proof agents to increase adhesion and strength and limit swelling. Usually blue.
Why should you buy wood chips in the Vietnamese market?
The export of wood chips in Vietnam is considered the largest market in Asia. It is exported to Korea, Japan, China, and some European countries with a freezing winter. Compared to the mild weather in Vietnam, the output here can meet customers’ needs.
Market situation of export wood chip price
From December 2021, Vietnam’s woodchip export market will be active again due to China’s strong growth in pulp consumption.
- Softwood pulp prices recover to $900/ton
- Hardwood pulp prices rose from a low of $700/ton to $777/ton.
In December, China’s export FOB price increased by about US$1-2/ton to US$119-120/ton. It was raised to US$124-125/ton and reported daily orders of US$128-130/ton.
Why buy wood chips at Woodbase
Woodbase has been a solid player in the wood industry market for many years. Here we supply more than 30000 tons per month so that you can be assured of our source. In addition, we not only focus on low prices but also on environmentally safe. We are committed to giving you the best shopping experience.
Link of product: Wood Chips
Contact us via the following information:
- (+84) 382 333 168 (James Doan)
- (+84) 345 218 168 (David Nguyen)
- Email: firstname.lastname@example.org
- Website: Woodbase® – Biofuel, Biomass Energy In Vietnam
It can be seen that wood chips have many different uses in the manufacturing industry. Wood chips prices are relatively low and aimed at many other customers. I hope this article has helped you to have an overview of this type of wood