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FOEX Indexes Ltd is an independent company providing audited, trade-mark registered pulp, paper, recovered paper and wood based biomass price indices.

Dec 5, 2017

Market Comments

PIX Bioenergy - Pellet Continental

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Pellet Continental Europe – The wood pellet supply has tightened in all main regions and spot prices have increased, especially in the ARA area. Drax Biomass has begun the startup of their 450 000 tpa LaSalle mill in Urania, US South. The production volumes are expected to impact especially the European industrial pellet market and will further increase Drax’ self-sufficiency.

The Central European heating pellet trade is also running well. The stocks are, however, low in the European residential heating market, as many producers reduced their production in the summer months, due to low demand, as reported by the Hawkins Wright Forest Energy Monitor. Demanding weather conditions, especially in Russia and the Baltics, have impacted the logging activity and reduced the fibre availability. Producers in Germany and Austria have now increased their production to be able to meet the increased demand. In Portugal, forest fires tightened the fibre availability during the summer months but pellet production has, since then, been normalizing.

Our PIX Pellet Continental benchmark value for the medium-scale pellet use in November increased by 2.70 euros, or by 1.33%, settling at 206.43 EUR/ton. This is up by 1.8% from the beginning of 2017 and up by 3.4% in the year-over-year comparison.