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Wood Pellet Market Analysis In South Korean and Japan

Market aspect is an important factor for a production, including wood pellets. The understanding of market characteristics will also determine the success of marketing these products. Korea and Japan are the two largest wood pellet markets today in Asia, so a number of export-oriented producers are trying to fill the market.

So What is the same and difference between the wood pellet market between Japan and South Korea?

Wood Pellet Market in South Korean and Japan


The   use of wood pellets for power plants both Japan and South Korea is policy   driven, namely Renewable Portfolio Standard (RPS) in Korea and Feed in Tariff   (FIT) in Japan


How   the mechanism of supplying wood pellets in the two countries is different.
  Japanese buyers prefer long-term contracts with fixed prices, wood pellet   producers also enter sustainability criteria (for example proven by FSC),   good forest management practices and stable macroeconomic conditions.
  While Korean buyers prefer the price of cheap wood pellets in "open   markets" with short-term contracts.


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