Coniferous wood fuel market in Eastern Asia

Earlier Report Observations

The coniferous wood fuel market in Eastern Asia saw a gradual decline from 73.7 million m³ in 2018 to 70.7 million m³ in 2020. This contraction was primarily driven by the onset of the COVID-19 pandemic in 2020, which caused labor shortages at overseas timber processing plants, reducing wood harvesting and production volumes. While pandemic-related isolation spurred additional demand for wood in housing construction, the overall market supply tightened, contributing to the lower market volume. In 2021, the market stabilized with a slight increase to 70.9 million m³ as continued strong wood demand during the pandemic, coupled with stable imports of New Zealand radiata pine, provided some support against the earlier supply constraints.

From 2022 to 2023, the market volume continued to shrink, falling to 70.2 million m³ and then to 68.2 million m³. This ongoing decline was largely due to weakening demand from the construction sector, as a downturn in the real estate cycle and the increasing cost-effectiveness of aluminum templates reduced the need for coniferous wood in building. Concurrently, global supply of softwood logs was constrained by factors like wildfires and insect infestations, while imports of coniferous logs into the region decreased significantly. Lower port inventories and rising log prices in late 2023 reflected these sustained supply-demand pressures.

A key market development occurred in 2024 with the Dalian Commodity Exchange launching wood futures and options contracts, set for official listing in November. This initiative, based on softwood species like radiata pine, is designed to help industry participants hedge market risks and stabilize import costs. It introduces a new tool for price discovery and standardization, arriving amid a context of reduced port inventories and broader global economic challenges affecting timber trade.

Production coniferous wood fuel in Eastern Asia

In kind, 2017-2020, K m³

Top producers of coniferous wood fuel, 2017-2020

World map of production of coniferous wood fuel, 2017-2020

Coniferous wood fuel production in Eastern Asia has declined for the third year in a row. In 2020, the region produced 68 271 thousand cubic meters, which is 1.5% lower than in 2019. Looking at the period from 2017 to 2020, production fell by 4.9%, averaging an annual decrease of 1.7%.

Annual dynamics of production in Eastern Asia in kind, 2017-2020, K m³

Exports coniferous wood fuel from Eastern Asia

Exports in kind, K m³

The data shows irregular changes, pointing to a volatile market environment. Import levels varied significantly, with a low of 1 thousand cubic meters in 2019 and a high of 4 thousand cubic meters in 2020, representing an 8.5-fold difference. In 2020, Eastern Asia's coniferous wood fuel exports reached 4 thousand cubic meters, a 752.7% increase year-over-year. The largest decline occurred in 2018, at 69.2%.

Annual dynamics of product's exports from Eastern Asia in kind, 2017-2020, K m³

From 2017 to 2020, Switzerland, Thailand, and Austria were the top buyers of coniferous wood fuel from Eastern Asia, accounting for 6.8%, 3.9%, and 2.4% of exports in kind, respectively. Together, they made up 13.1% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Eastern Asia in kind, 2017-2020

Exports in value, M $ US

Exported coniferous wood fuel volumes from Eastern Asia have increased for the third consecutive year. In 2020, the region exported 0.4 million US dollars worth of coniferous wood fuel, up 362.8% from 2019. Between 2017 and 2020, exports grew by 374.9%, with an average annual rate of 68.1%.

Annual dynamics of product's exports from Eastern Asia in value, 2017-2020, M $ US

From 2017 to 2020, coniferous wood fuel from Eastern Asia was supplied to a wide range of markets. The United States, Asia (not elsewhere specified), and Germany accounted for 11.9%, 2.6%, and 2.4% of exports in value terms, respectively, totaling 16.9%. Many smaller destinations made up the remaining 83.1%.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Eastern Asia in value, 2017-2020

Imports coniferous wood fuel to Eastern Asia

Imports in kind, K m³

Eastern Asia's coniferous wood fuel import volume has declined for the second consecutive year. In 2020, imports totaled 2 466 thousand cubic meters, a 5.6% drop from 2019. Over the 2017-2020 period, imports decreased by 15.6%, with a compound annual growth rate of -5.5%. The highest import level was in 2018 at 3 105 thousand cubic meters. The largest decline was in 2019 at 15.9%, while the largest increase was in 2018 at 6.3%.

Annual dynamics of product's imports to Eastern Asia in kind, 2017-2020, K m³

From 2017 to 2020, the United States, Australia, and Fiji were the main sources of coniferous wood fuel imports to Eastern Asia, accounting for 41.9%, 35.4%, and 8.6% of imports in kind, respectively. Together, they absorbed 85.9% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Eastern Asia in kind, 2017-2020

Imports in value, M $ US

Coniferous wood fuel deliveries to Eastern Asia have declined for the second consecutive year. In 2020, imports were recorded at 298.6 million US dollars, down 12.0% from 2019. Between 2017 and 2020, imports decreased by 10.4%, averaging an annual decline of 3.6%. The peak value was in 2018 at 401.1 million US dollars. The largest decline occurred in 2019 at 15.4%, while the largest increase was in 2018 at 20.3%.

Annual dynamics of product's imports to Eastern Asia in value, 2017-2020, M $ US

From 2017 to 2020, the United States, Australia, and Fiji remained the principal suppliers of coniferous wood fuel to Eastern Asia, accounting for 42.8%, 36.2%, and 8.1% of imports in value terms, respectively. Together, they made up 87.0% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Eastern Asia in value, 2017-2020