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Wood pellet manufacturing volumes growth makes sawdust and woodchip prices rise

Pellet manufacturing volumes growth makes

Wood fiber experts detect wood pellet manufacturing volumes growth in Northern America within latest five years. USDA forest service provides estimates that the wood pellets manufacturing amount grew from about million tons, manufactured in 2004 to over six million tons in 2009. British Columbia was the first country, who started using cheap sawmill leftovers and manufacture wood pellets for rapidly- developing European market.

Industry professionals forecast that US southern States will grasp leading position of wood pellets manufacturer as the same industry area in Canada did not change much their amount of wood pellets manufacturing for the same period of time. The US wood pellets export amount growth made great investment in pellets manufacturing volumes. Though the same professionals specify that second largest wood pellets manufacturer in Northern America provide pellets for external market only.

As US industry experts report – pellet industry sector encountered significant growth since 2004, having turned the manufacturing capacity of about two million tons by the year 2009. Such growth looks impressive as the pellet production costs have significantly dropped down, both in Canada and in US. The experts inform that in 2008 industry output made 66% from total manufacturing powers in US and 81% in Canada. Usual initial problems of new factories, financial difficulties of some companies and shortage of affordable wood fiber supplies explain low prices setting.

The wood pellets fiber demand growth made pellet producers use in most cases expensive wood fiber supplies instead of usually used sawdust from local sawmills. Currently more pellet companies use wood chips, usually used at pulp factories. And, biomass domain development, wood chip costs sawdust and woody biomass prices become partial reason for pellet prices growth in the autumn of 2009.

During past five years, the US North West encountered significant sawdust prices growth. As industry professionals report, the average sawdust price made 28USD per oven- dried metric ton. The greatest price of 74USD per oven- dried metric ton has been detected at the end of 2008 and than prices drop down occurred, having stopped on the level of 64USD per oven-dried metric ton in the third quarter of the year 2009. According to industry experts forecast -the prices growth similar to the one occurred in Canada and US is likely to happen in all countries, experiencing pellets industry development.

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Wood pellet manufacturing volumes growth makes sawdust and woodchip prices rise


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Views: 6106 Added: 07-02-2010