While log exports continue to be problematic, woodchip exports rose significantly in 2021, to reach 5.343 million bone dried metric tonnes (bdmt). The 13.8% rise in total exports was driven by a combination of solid growth (7.3%) in the large volume of hardwood chips and a very big rise (73.4%) in exports of softwood chips.
The latter – higher softwood chip exports – comes about in part because of the challenges in exporting softwood logs. There is evidence of increased chipping – especially infield – allowing for some residues to be exported that would previously have been exported as logs.
The chart here shows that while total exports have risen, they remain significantly below the stable annual volume – the red line – recorded through until around the middle of 2019. Those volumes were routinely between 7.5 and 7.7 million bdmt, indicating there is probably room for growth on the supply side.
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Starting with softwood chips, The chart here shows that annualised exports grew strongly through 2021, peaking at 0.996 million bdmt year-ended November 2021, and slipping back slightly from there in December (0.959 million m3).
Historically, the market was dominated by shipments to Japan. While that continues, shipments to China are not insignificant. More recently the ‘Other’ designation is the result of exporters seeking confidentiality restrictions on the data, so that no details are provided.
To go straight to the dashboard and take a closer look at the data, click here.
The same confidentiality restrictions apply to the much larger volume of hardwood chip exports. In 2021, total hardwood chip exports lifted to 4.258 million bdmt, but clearly remain well below their annual peaks of greater than 6.3 million bdmt per annum recorded through to the middle of 2019.
Based on its vessel tracking and other market intelligence activities, IndustryEdge has advised hardwood chip exports continue to favour China and are growing into China, ahead of the other main market, Japan.
To go straight to the dashboard and take a closer look at the data, click here.
