Current Situation of the Wood Pellet Market: Grade 3 Prices Falling, Grade 1 in Short Supply, Exports Slowing Down
🌱 Current Volatility in the Wood Pellet Market
The wood pellet market in Vietnam is going through a highly challenging period. While grade 3 wood pellets are decreasing in price due to low demand, grade 1 wood pellets are falling into a state of scarcity because of a shortage of high-quality raw materials. In addition, the export market is also stagnating, creating great pressure on manufacturers in the industry. In particular, the purchase price of pellets in the South has dropped by 100 VND/kg, causing many units to struggle to maintain operations.
🎯 Situation of Wood Pellet Types
1️⃣ Grade 3 Wood Pellets See Price Drop
Grade 3 wood pellets, commonly used in small-scale or domestic energy consumption applications, are currently seeing a sharp price decline. The main reason is low market demand and fierce competition among manufacturers.
This directly affects the profits of small and medium-sized production facilities, which primarily focus on this segment.
2️⃣ Grade 1 Wood Pellets Are in Short Supply
Grade 1 wood pellets, with high quality and compliance with international standards, are currently in short supply. The main reason is the lack of high-quality input materials such as clean sawdust and wood shavings.
Large factories are facing difficulties in ensuring a stable supply to meet export demand, especially to markets such as South Korea and Japan.
🔥 Fluctuations in Input Material Prices
1️⃣ Sharp Increase in Wood Shavings Price
The price of wood shavings is currently ranging from 2.4 – 2.7 million VND/ton, a significant increase compared to previous months. This pushes up the production cost of wood pellets, creating major pressure on manufacturers.
2️⃣ Dry Firewood Price Also Rising
The price of dry firewood ranges from 2.1 – 2.2 million VND/ton, a considerable increase compared to the previous quarter. This adds pressure on manufacturers, especially units that rely heavily on this material source.
💡 Situation of Wood Pellet Exports
1️⃣ Korean Market
The FOB export price to Korea is currently around 128 USD/ton. However, demand from this market is slowing down due to economic factors and changes in import policies.
2️⃣ Japanese Market
The FOB export price to Japan has reached 150 USD/ton, higher than Korea. However, this market is also facing intense competition from other suppliers in the region.
⚠️ Pressure to Reduce Purchasing Prices in the South
According to the latest information, UNI Export has reduced the purchasing price of pellets in the South by 100 VND/kg. This creates additional pressure on manufacturers in the area, forcing them to either optimize their production process or accept lower profit margins to maintain operations.
🔥 Phong Thai Thuan – Trusted Partner in Biomass Energy
As a pioneer in the biomass energy sector in Vietnam, Phong Thai Thuan is proud to provide clean fuel solutions such as wood pellets, D90 firewood, and other biomass products. We are committed to:
✅ Guaranteed Quality: Products meet international standards, suitable for all technical requirements.
✅ Transparent Origin: Raw materials are strictly controlled to ensure sustainability.
✅ Professional Service: Dedicated consulting, on-time delivery, and customer support anytime.
📞 Contact Us Now for Detailed Consultation:
📍 Address: 154/31 Nguyen Phuc Chu, Tan Binh District, Ho Chi Minh City
📲 Hotline: 092 5965 000
📩 Email: info@phongthaithuan.com.vn
🌐 Website: www.phongthaithuan.com.vn
