Overview of the international pellet mill trade
The international trade of pellet mills rose in the last decade only to fall in the depths of the global financial crisis in 2009. Europe has consistently been the largest market for traded pellet mills, at around 60 percent, with Russia accounting for one-fifth of the world total by value. China is only the third largest exporter by value, well behind number one Germany which accounts for 57% the world’s pellet mill trade. On average, exported Chinese pellet mills are cheaper and smaller by weight than those from other countries. The data suggests that a substantial share of China’s traded pellet mills were bound to other top manufacturing countries such as the United States and Germany which may have reworked or re-branded the units, then resold them, particularly in the years 2006 and 2007; outside of these two breakaway years, China has exported fewer than 10,000 units.
Trends in the International Trade of Pellet Mills
As world trade has increased in the last decade, corresponding gains have been made in the market of internationally traded pellet mills. Since 2001 total world trade has more than doubled, from USD 7.7 trillion to USD 15.8 trillion as of 2009. Similarly, internationally traded pellet mills were valued at USD 411 million in 2002, then peaked at USD 1.3 billion in value before falling to USD 897 million in 2009—a time of collapsed trade due to the global financial crisis.
As the world economy recovers, it is right for the international trade of pellet mills. The International Monetary Fund showed that the world economy grew at around 4.5 percent from 2011 through 2016. International trade, averaging 28 percent of world gross domestic product (GDP) from 2000 to 2009, increased similarly, if not faster than the overall economy should the trend of the last decade carry over to the next. This has positive implications for traders of pellet mills.
Top Pellet Mill Importers: Potential Target Markets
Around 62,000 pellet mills were traded in 2009 according to the United Nations’ Comtrade database, a huge drop from the 135,042 units traded in 2008—the peak year for world pellet mill trade. Europe is the primary destination for the world’s traded pellet mills, holding around 60 percent of the market from 2000 to 2009. Although Western European nations such as Germany, Italy and France are included in the top ten, European demand is largely driven by those countries on the eastern part of the continent—Russia, the Ukraine and Turkey. Developing nations such as those in Eastern Europe, Latin America (such as Brazil and Venezuela) and India comprise some of the foremost markets for imported pellet mills, although over 100 countries regularly import these products.
Top Pellet Mill Exporters: Sources of Competition
Exporters of pellet mills are far less numerous than those that import and are dominated by a single country: Germany. Manufacturers here claimed nearly 60 percent of the internationally traded market for pellet mills, followed by Italy with 15 percent and by China, in third, with 5 percent. The average FOB price for Chinese made pellet mills was lower than most of the competition, as was the average weight per unit, suggesting that Chinese manufacturers have been more successful in trading smaller sized pellet mills. The only country offering a lower price than China was Malaysia, although Malaysian pellet mill exports averaged below 300 kilograms per unit in 2009.
Future of pellet mill trade
Although there is some difficultly in the past few years about pellet mill trade, but it still has huge improvement for GEMCO. This is because of the high quality pellet mill, has the qualification to complete with other countries.
