Import Demand For Asian Wood Chips Slowed Sharply

- May 30, 2018 -

From 2010 to 2016, the volume of imported Asian wood chips reached a record high in 2010-2016 but declined in 2017. But even as demand growth slowed, some of the top woodchip makers in the region have struggled to maintain exports. The price of cork woodchips soared in early 2018, and RISI, a leading provider of business intelligence for the global forest products industry, also explored the possibility of a shortage of hardwood chips in the future.


Demand for Asian wood chip imports has slowed down substantially, but exports from Thailand and Indonesia have rapidly declined. The price of Citi pine chip swarf experienced an unprecedented peak in early 2018, and hardwood chip swarf prices have also registered the largest year-on-year rise since 2011.


In terms of demand, at the beginning of 2018, there was renewed interest in the production of wood chips and the import of biomass in northern Europe. However, Japan's demand for imported biomass wood chips has exceeded that of Europe, and imports of wood pellets and PKS are also rapidly increasing. After bottoming out in 2016, the cost of marine transportation rose again. But the key issue for the next few years is the export of key hardwood wood chip suppliers: Vietnam, Australia, Chile and South Africa.


In the future, transportation costs, increased production outside Asia, and the continued prosperity of biomass power generation are all elements of market research.


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