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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.

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Sep 19, 2017

Market Comments

PIX Bioenergy - Pellet Nordic

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Pellet Market – The European industrial pellet spot market has been tight which has been pushing the prices up, as reported by Hawkins Wright Forest Energy Monitor. According to USDA FAS GAIN, the EU pellet production was 14.8 Mt in 2016, which is about half of the global production total. Contrary to many other areas, the pellet plants in EU are small or medium sized and produce pellets mostly for the domestic market, the exceptions being the Baltics and Portugal.

On a global scale, FutureMetrics estimates that after 2019, most industrial pellet demand growth will come from Japan and South Korea. Both countries have their own national policies driving the replacement of coal with wood pellets.

Temperatures in August remained below or near the average in most parts of the Nordic countries. The local pellet market remained rather calm. Euro showed again a small weakening against the Swedish Crown, down by 0.4% from July to August, on average. This gave a downward push to the SEK value, and the opposite pressure to the Euro value. After removing the highest and lowest 10% of the price quotes, the PIX Pellet Nordic index value in Euro terms showed a decrease of 36 cents, or 1.36%, and closed at 26.03 EUR/MWh. The index value in SEK decreased by 4.51 crowns, or by 1.78%, ending at 248.55 SEK/MWh.