Buying Guide

Wood Pellet Prices (April-June 2024)

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North Asian countries like Japan and South Korea are increasingly turning to wood pellets as a renewable energy source to reduce their reliance on fossil fuels.

This article explores the projected prices of wood pellets from Vietnam and North America destined for North Asia in April, May, and June 2024, offering insights into the market dynamics shaping this trade.

Current Market Trends

The wood pellet market is currently experiencing some fluctuations. Supply chain disruptions and high energy prices are impacting global markets.

In Vietnam, a major wood pellet exporter, pellet production is expected to remain steady, but rising production costs due to energy and logistics might nudge prices upwards.

Projected Prices (April-June 2024)

The table below shows the estimated wood pellet spot prices (FOB – free on board) for Vietnam and North America (USA & Canada) delivered to North Asia in April, May, and June 2024. Freight rates are indicative and can vary depending on factors like vessel size and route.

Region April (USD/ton) May (USD/ton) June (USD/ton) Freight to North Asia (USD/ton)
FOB Vietnam Spot Prices for Japan 130 – 140 130 – 140 135 – 145 24 – 30
FOB Vietnam Spot Prices for Korea 110 – 120 110 – 120 115 – 125 24 – 30
FOB USA & Canada Spot Prices 155 – 165 155 – 165 155 – 175 45 – 50


  • Vietnamese Wood Pellets: The requirement for FSC certification in Japan, coupled with potentially higher demand from the Japanese market, is likely to push Vietnamese wood pellet prices slightly higher compared to those for Korea. This highlights the interplay between sustainability standards and market forces.
  • North American Wood Pellets: Prices from North America are expected to be consistently higher than Vietnamese pellets due to longer transport distances and potentially higher production costs.

Additional Factors to Consider:

  • Geopolitical Landscape: Global events can significantly impact wood pellet prices. For example, the ongoing conflict between Russia and Ukraine has disrupted energy supplies and could lead to increased demand for wood pellets.
  • Currency Fluctuations: Currency exchange rates between the US dollar and regional currencies can influence the final landed cost of pellets in North Asia.

Predicted Price Trends (July-December 2024):

pellet facts

  • Initial Stability (July-August): Prices might remain relatively stable initially, continuing the trend from April-June. However, this depends on a continuation of current supply and demand conditions.
  • Potential Upward Trend (September-December): Several factors could push prices upwards in the latter months:
    • Peak Season Demand: Winter months in North Asia typically see a rise in energy demand, which could translate to higher pellet demand and potentially higher prices.
    • Supply Chain Fluctuations: Ongoing supply chain disruptions or unforeseen events could restrict pellet availability and lead to price hikes.
    • Geopolitical Events: The ongoing Russia-Ukraine conflict or other unforeseen events could further disrupt energy supplies, increasing demand for alternative fuels like wood pellets.

Price Range Estimates (July-December 2024):

  • Vietnamese Wood Pellets:
    • Japan (FOB): $130 – $160 per ton (accounting for potential upward pressure due to FSC certification and winter demand)
    • Korea (FOB): $115 – $140 per ton (accounting for potential winter demand)
  • North American Wood Pellets: $160 – $180 per ton (accounting for longer transport distances and potential production cost increases)


The wood pellet market for North Asia in April-June 2024 is expected to see relatively stable prices with a slight upward trend. Vietnamese pellets are likely to remain cost-competitive compared to North American pellets.

However, geopolitical and economic factors can cause fluctuations. Monitoring these factors is crucial for informed decision-making by pellet buyers in North Asia.

Reported from Top Pellet & Farmvina

Originally posted 2024-04-01 01:53:25.

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