In the spring of 2014 the wood pellet price fell to its minimum on the EU biofuel market

In the spring of this year in most European countries the wood pellet price fell to its minimum for the last few years. So, the wood pellet price in the first quarter of 2014 decreased by 15% -20% compared to the price in the previous heating season.

In particular, in Austria in April, 2014 the pellet price amounted to € 242.8/t in comparison with € 260.8/t in September, 2013. In Germany in April the price of wood granules was € 259/t, although in December of 2013 the price of pellets constituted € 285.61/t.

In the Baltic region of Europe it is seen some fall in prices for granules as well. At the end of February, 2014 the average pellet price in the region was € 128/t and in March – € 125/t.

But in May the price of pellets in Germany amounted to € 250,0/t, in Austria – € 241.30/t and in the Baltic region – € 122.7/t.

The fall in wood pellet prices will allow consumers to save around € 1,000/t which corresponds to € 5,000 for heating season.

Therefore, for those who still do not use electricity and heat from renewable sources, this is the time to think about installing solid fuel boiler on pellets. The total number of boilers that has been already installed this year is about 20 thousand pieces.

However, the analysts of Ukrainian Biofuel Portal pellets-wood.com claim that in the third quarter of 2014 the price of pellets will increase again, so it is the best time to think about the purchase of wood pellets. Thus, in the summer of 2014 the price of wood pellets in some Eastern European countries, for example in the Czech Republic, could rise to € 250/t. The price of pellets in bags of 5 kg will be significantly higher than the price of fuel pellets in big-bags.

Wholesale purchase of pellets is very competitive in the period between heating seasons, as usually it is seen the lowest price level for wood pellets at this time of the year. So analysts recommend to buy pellets during this period and to store fuel granules untill the heating season.

We should note that over the past two years the price of wood pellets has increased in most European countries, which is mainly due to the increase in demand for wood pellets on the European domestic market.

So, over the past two years on the wood pellet market in Europe there have happened some changes. Thus, from the beginning of the current year it has been seen the fall in prices for wood pellets. And despite the fact that last year the price of pellets increased, in the second quarter of 2104 the cost of granules reached its minimum for the last few years.

Author: Ivan Prokhorov