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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.

Jan 2, 2019

Market Comments

PIX Bioenergy - Pellet Continental

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Pellet Continental Europe – The prevailing shortage of spot volumes in the start of the heating season has pushed the industrial wood pellet prices even higher. On the raw material sector, sawmills have been running well and wood availability has been good, allowing stock building at wood pellet mills. An unusually hot and dry summer led to extensive forest damages and cuttings in central and eastern Europe. Raw material demand has also been good as pellet plants have been operating non-stop before the festive season.

The EU pellet imports totalled 13 million tonnes in the first nine months of 2018, showing an increase of about 10%, year-on-year. The main importer was again the UK, followed by Denmark and Italy.

A Portuguese start-up company is constructing the first torrefied wood pellet plant in the country in Valongo, near Porto. Futerra Fuels’ plant with a capacity of 175,000 tpa in total will produce largely black but also white pellets.

In December, the heating season was on throughout central Europe. The PIX Pellet Continental benchmark headed higher by 4.66 euros, or by 2.12% and closed at 224.34 EUR/t.