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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.

Mar 20, 2018

Market Comments

PIX Bioenergy - Pellet Nordic

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Pellet Market – The industrial pellet market has remained tight, as reported by Hawkins Wright Forest Energy Monitor. The demand for pellets by Scandinavian CHP and industrial instalments has been high and has impacted the spot market prices.  Heating pellet demand has also been high due to the cold weather, which still persists in Central Europe. In addition, an exceptionally cold period has been experienced from Italy to the UK. This has kept the heating pellet market lively also in these countries.

This year, the weather in many parts of the Nordic countries was colder than on average in February. This increased heat and electricity demand in the region. After the weakening seen in January, the Euro became again stronger against the Swedish Crown in February, and the monthly average exchange rate went up by 1.2%. This means an upward push for the SEK value, and the opposite for the Euro value. After removing the highest and lowest 10% of the price quotes, the PIX Pellet Nordic index value in Euro terms showed an increase of 45 cents, or of 1.67%, and closed at 27.47 EUR/MWh. The index value in SEK headed north by 7.67 crowns, or by 2.89%, ending at 273.01 SEK/MWh.