It may not be a major part of the Australian industry, and it may not ever be, but the global wood pellet market continues to grow. Latest data analysed by Forest2Market in the US shows that US exports of wood pellets rose 17% in 2018, to 6 million tonnes. Of interest, the export value rose 22% to USD812 million. Source: Timberbiz
Forest2Market reports that despite growth in the Asian wood pellets market, the traditional and mature European markets dominated the global wood pellets trade. In 2018, the UK received 4.7 million tonnes (78%) of US wood pellet exports, with second-placed Belgium-Luxembourg receiving 580,000 tonnes and Denmark 473,000 tonnes.
Future developments are expected to include growth in Japanese markets, where investment in the US industry has been supported by long-term off-take agreements.
It might be some way off before the Australian industry sees significant wood pellet growth. It may never occur. However, regardless of the outcome, the key take out is that growing wood pellet exports and consumption around the world are placing continuing pressure on limited fibre supplies.
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