Generally speaking, woodchip used as raw materials for paper manufacturing is being produced locally for local consumption in many countries and woodchip imports trade has concentrated in Asia and parts of Europe.
Japan has been the leading country in woodchip import trade and it has recorded 14 million Bone Dry Tons (BDT) in 2008, their highest woodchip import volume ever but due to decline in Japanese economy and increase in paper imports into Japan after the `Lehman shock’ or Global Financial Crisis, this import volume is now around 80% of 2008 import level.
While we saw a large decline in woodchip imports into JPN, there has been a large increase in woodchip imports into China, increasing from about1million BDT in 2008 to 7 million BDT in 2012, and this is expected to reach11million BDT which is similar to Japan volume in the next few years.
We have also seen a sharp increase in woodchip export volume from Asia such as Vietnam & Thailand, going from1million BDT for Vietnam and 0.7 million BDT for Thailand in 2008 to 5.8 million BDT and 2.9 million BDT respectively. Woodchip export volume out of Vietnam and Thailand is now no. 1 and no. 3 in the world.
Due to these factors, demand for woodchip import which is focused on Hardwood to China is actually increasing in the Pacific Rim region and market share on woodchip trade held by Japanese Paper companies is said to drop to around 50% of total Asian woodchip import demand by 2015. There are fears that this will lead to weakening of influence Japanese Paper companies will have in woodchip price negotiation in the future.
Considering the demand by China and in recent years, India and alternate use of woodchip such as particle boards and wood based biomass by China & Korea, issues Japan will face would be effective utilisation of domestic resource and to secure resource in mid to long term.
Based on this situation, I will be trying to clarify current status of global woodchip supply & demand, as well as impact China will have in the future.
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