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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.

Sep 4, 2018

Market Comments

PIX Bioenergy - Pellet Continental

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Pellet Continental Europe – In the industrial pellet sector, spot volumes have been scarce in Europe in summer. Demand can be expected to pick up with several power plants in the ARA area and the UK starting to co-fire pellets or are yet to reach their full capacity. Also, Drax has recently finalised the conversion of its fourth unit from coal to wood pellets. The two remaining coal-burning units will still need to be replaced by gas-fired power generating units, but the company expects to be off-coal before the 2025 deadline set by the government.

Looking at the 2017 trade statistics, the Austrian pellet exports were up by 17.9%, year-over-year. Almost 90% of the export volumes headed to Italy. Imports increased only modestly, i.e. by 2.4%, y-o-y. Also in 2017, over 5000 new pellet heating boilers (<100 kW) were installed in Austria, representing an increase of 18.5% year-over-year.

August was still part of the off-heating season even though in the last weekend of the month, the weather temporarily turned unusually cold in the alpine regions of Southern Germany and Western Austria, which even saw up to a 40 cm snowfall. The PIX Pellet Continental index for medium-scale use advanced by 69 cents, or by 0.33%, closing at 206.85 EUR/ton.