Wood pellets market in China

Earlier Report Observations

The wood pellets market in China began the period with a nascent industry structure, characterized by numerous small-scale producers and high entry barriers. Over the following years, the sector matured through equipment and process improvements, enhanced information sharing among enterprises, and greater production stability. This evolution occurred alongside increasing global and domestic demand for renewable energy, reinforced by national policies aimed at reducing greenhouse gas emissions and promoting solid waste utilization within a circular economy framework.

Regulatory developments played a key role in shaping the market environment. The introduction of the 'Boiler Air Pollutant Emission Standards' (draft) in 2024 set specific particulate matter requirements for wood-based fuels, directly affecting production and usage specifications. Simultaneously, the National Development and Reform Commission's 'Guidance on Vigorously Implementing Renewable Energy Replacement Actions' provided clear policy direction for biomass fuel substitution. The launch of a timber futures market added price transparency and risk management for raw materials, while the expansion of the national carbon market further supported the application of low-carbon fuels like wood pellets.

Domestic production remained steady at 873 thousand tonnes annually from 2018 through 2023. The available domestic market volume showed minor fluctuations, hovering between 863 and 870 thousand tonnes, as changes in export volumes adjusted the supply for local consumption. The industry consolidated its position as the world's largest producer, accounting for approximately 27% of global output, with a diversified product portfolio meeting various market needs against a backdrop of ongoing technical and safety standard improvements.

Production wood pellets in China

In kind, 2017-2020, K t

From 2017 to 2020, China ranked 12th globally in wood pellet production.

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

In 2020, China produced 873.0 K t of wood pellets, showing minimal change compared to 2019. The largest decline occurred in 2018 at 0.0%, while the largest increase was also recorded in 2018 at 0.0%.

Annual dynamics of production in China in kind, 2017-2020, K t

Exports wood pellets from China

Exports in kind, t

The market showed significant volatility during these years. Exports reached their lowest point in 2018 at 4 534 t and peaked in 2019 at 9 644 t, representing a 2.1-fold difference. In 2020, China exported 4 809 t of wood pellets, a 50.1% decrease from 2019. The largest increase was recorded in 2019 at 112.7%.

Annual dynamics of product's exports from China in kind, 2017-2020, t

From 2017 to 2020, the main markets for China's wood pellet exports in kind were South Korea (43.3% of exports), Japan (36.0% of exports), and Asia, not elsewhere specified (14.5% of exports), together accounting for 93.8% of total flows.

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, K $ US

The market displayed an unstable trend throughout the period. Exports hit their lowest point in 2018 at 868 K $ US and reached their peak in 2019 at 1 550 K $ US, showing a 1.8-fold difference. In 2020, China exported 1 382 K $ US of wood pellets, a strong decline of 10.8% from the previous year. The largest decline occurred in 2018 at 41.6%, while the largest increase was in 2019 at 78.6%.

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

From 2017 to 2020, the primary destinations for China's wood pellet exports in value terms were Japan (37.7% of exports), South Korea (30.8% of exports), and Asia, not elsewhere specified (19.3% of exports), collectively representing 87.8% of total flows.

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 pellets to China

Imports in kind, t

In 2019, China's imports of foreign wood pellets amounted to 1 t, showing little change from the previous year. Between 2017 and 2019, imports decreased by 100%, equivalent to an annualized rate of 96.2%.

Annual dynamics of product's imports to China in kind, 2017-2020, t

From 2017 to 2020, Malaysia was the main source for wood pellet imports to China, consistently accounting for 92.5% of total imports in kind.

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, K $ US

In 2019, China's imports of wood pellets from abroad totaled 12 K $ US, remaining virtually unchanged from the prior year. Over the period 2017-2019, imports decreased by 99.3%, with a compound annual growth rate (CAGR) of 80.9%.

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

From 2017 to 2020, China's reliance on Malaysia was significant, with this market representing 92.4% of total wood pellet imports in value terms.

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

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