Economy

Acacia prices increase but acacia wood products in Nghe An are difficult to sell

Van Truong DNUM_CBZAIZCACE 06:38

A paradox is happening that the price of acacia in Nghe An has increased sharply, while products made from acacia wood such as wood pellets, acacia boards, and laminated wood are very difficult to sell, and many places are in stock.

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Thanh Chuong Wood Production and Trading Joint Stock Company is currently holding 25,000 tons of wood pellets in stock. Photo: Van Truong

A representative of Thanh Chuong Wood Production and Trading Joint Stock Company in Thanh Huong Commune (Thanh Chuong) said: The wood pellet factory with a total investment capital of 350 billion VND in phase 1 will be put into operation from 2021, with a capacity of 150,000 tons/year in phase 1.

From around May 2024 until now, pellet prices have dropped, making output difficult. Previously, the peak price was 200 USD/ton, now it is only 130-140 USD/ton, pellets are mainly exported to the Japanese market. Due to output difficulties, up to now, the unit has a large inventory of over 25,000 tons of pellets. The reason is that the demand for pellets in Japan is low, so prices are low and difficult to consume.

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Wood pellets are currently facing great difficulties in exporting. Photo: Van Truong

Currently, the unit is operating at a low level to retain workers and cope with the above difficulties, while at the same time, making efforts to find new orders in the Japanese market and some other partners.

A facility specializing in processing acacia plywood in Tan Thang commune, Quynh Luu district shared: In the past 3 months, the number of products processed from acacia wood has dropped sharply. The acacia plywood products were previously sold to the domestic market and exported to Korea at a price of 3.1 million VND/m3, now reduced to only 2.8-2.9 million VND/m3.

Low prices and difficult consumption make our factory currently operating at a low level. Previously, we processed over 50 tons of acacia wood per day, but now we only produce 10-15 tons per day to retain workers.

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Some plywood production facilities are operating at a low level. Photo: Van Truong

Research shows that the province currently has many small-scale establishments specializing in the production of glue-free plywood, but due to difficulties in consumption, some establishments have had to stop production. For example, the glue-free plywood processing facility in Nam Son commune, Do Luong district and the glue-free plywood processing facility in Tang Thanh commune, Yen Thanh district, which invested billions of dong in machinery systems, have now had to be "covered".

In the same situation, Song Hieu Forestry and Agriculture Company Limited currently has over 500 m of inventory.3Wood products, inventory is mainly laminated wood, wood blanks exported to European countries. The representative of this unit said: Export is difficult, currently, businesses are looking for new domestic markets but it is also very difficult.

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Peeled plywood products in Nghe An are difficult to sell. Photo: Van Truong

The price of acacia in Nghe An has increased sharply, reaching nearly 1.4 million VND/ton, while products from acacia wood such as wood pellets, acacia boards, and laminated wood are very difficult to sell. Through research, it is known that the reason for the increase in acacia prices is because the market for wood chips sold to the Chinese market is very easy to sell, in Nghe An and Thanh Hoa, many establishments buy acacia at high prices to chop chips.

Meanwhile, wood pellets, acacia boards, and laminated wood products exported to countries with low consumption demand have led to inventory. Not to mention that partly because wood processing products in Nghe An do not meet export standards, there is also a backlog.

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Song Hieu Agricultural Forestry Company Limited has over 500 m of inventory.3Laminated wood. Photo: Van Truong

According to experts, in order for wood processing products in Nghe An to be easily consumed, it is necessary to promote the planting of large FSC timber forests, providing certified wood materials that meet the requirements of the international market. Enterprises need to invest in building modern wood processing factories, improving designs, quality, technology and building product brands with high quality and suitable prices to compete in the export market...

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Acacia prices increase but acacia wood products in Nghe An are difficult to sell
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