Wood fuel market in China

Earlier Report Observations

Between 2018 and 2020, wood fuel production in China gradually declined from 162.9 million m³ to 156.9 million m³. During this period, import volumes began to rise, supported by growing domestic demand for wood pellets, as highlighted by the continued activity and growth of key player Jilin Hongri New Energy Co., Ltd. Global manufacturers also expanded production, contributing to increased availability of biomass pellets in the international market.

From 2021 to 2023, production continued to fall, reaching 148.4 million m³ in 2023. Imports surged, peaking at 29.2 million m³ in 2022, which lifted the total market volume to 180.2 million m³ that year. This import growth was driven by global increases in biomass pellet demand and intensified competition from international producers. In 2023, the launch of biodiesel pilot projects by the National Energy Administration, approving 22 units for biodiesel blending in ship fuel, stimulated additional demand for biomass-based fuels, supporting market activity even as domestic production contracted.

In 2024, imports remained elevated at 28.1 million m³, reflecting ongoing policy support for biodiesel and international market developments. Projects like Pengyao Environmental Protection's biomass liquid fuel initiative, which achieved EU ISCC certification and commenced exports, illustrate the industry's move towards higher-value segments and global integration, while global biomass pellet market growth continued to influence trade flows.

Production wood fuel in China

In kind, 2017-2020, M m³

Globally, China ranked as the world's second-largest producer of wood fuel between 2017 and 2020.

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

China's wood fuel production declined for the third consecutive year. In 2020, the country produced 156.9 million cubic meters of wood fuel, representing a 1.9% decrease compared to 2019. Between 2017 and 2020, production fell by 5.5%, which translates to an annualized decline rate of 1.9%.

Annual dynamics of production in China in kind, 2017-2020, M m³

Exports wood fuel from China

Exports in kind, K m³

After two years of growth, China's wood fuel exports declined. In 2020, the country exported 160 thousand cubic meters of wood fuel, marking a 14.5% year-over-year decrease. Over the 2017-2020 period, exports increased by 3.8%, with a compound annual growth rate of 1.3%. The largest increase occurred in 2018 at 10.8%, while exports peaked in 2019 at 187 thousand cubic meters.

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

Between 2017 and 2020, three key markets—Japan, South Korea, and Saudi Arabia—collectively accounted for 57.2% of China's total wood fuel exports by volume.

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

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

Exports in value, M $ US

China's wood fuel exports increased for the third consecutive year in value terms. In 2020, exports totaled 191 million US dollars, reflecting an 8.7% rise compared to 2019. Between 2017 and 2020, export value grew by 71.3%, equivalent to an annualized growth rate of 19.7%.

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

From 2017 to 2020, Japan (26.0% of export value), Saudi Arabia (14.9%), and the United Arab Emirates (8.0%) were among the largest buyers of wood fuel from China. However, together they represented just 48.9% of total export value, indicating a broadly diversified partner base.

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

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

Imports wood fuel to China

Imports in kind, K m³

China imported 160 thousand cubic meters of wood fuel in 2020, showing a limited increase of 6.5% compared to the previous year. Over the 2017-2020 period, imports grew by 19.1%, with a compound annual growth rate of 6.0%. The largest increase occurred in 2018 at 13.1%, while imports saw their largest decline in 2019 at 1.1%.

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

Between 2017 and 2020, Vietnam (48.6% of import volume), Australia (27.8%), and Chile (9.1%) were the primary suppliers of wood fuel to China, jointly accounting for 85.6% of total imports by volume.

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

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

Imports in value, M $ US

After two years of growth, China's wood fuel imports declined in value terms. In 2020, imports amounted to 2 338 million US dollars, indicating a modest decrease of 6.5% compared to 2019. Between 2017 and 2020, import value increased by 19.4%, equating to an annualized growth rate of 6.1%. The largest increase was recorded in 2018 at 20.1%, while imports reached their peak in 2019 at 2 501 million US dollars.

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

From 2017 to 2020, Vietnam (41.8% of import value), Australia (32.0%), and Chile (11.1%) led the ranking of wood fuel suppliers to China, with their combined share reaching 84.9% of total imports by value.

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

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