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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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Aug 15, 2017

Market Comments

PIX Bioenergy - Pellet Nordic

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Pellet Market – According to Hawkins Wright Forest Energy Monitor, Drax’ planned maintenance in their biomass converted units during August-November will move some of their pellet volumes elsewhere. One of their units will be offline from August to November and other two units will have shorter offline periods in August-September.

Scandbio is planning to invest in one of their pellet mills in Norberg to increase their annual pellet production. Updating the mill’s equipment will increase the production by 30 000 ton annually from the current 130 000 ton capacity.

Russian pellet production and exports are expected to grow by 10% during this year to 1.45 Mt, as estimated by a report from USDA FAS GAIN. The strong demand from the EU, as well as an increasing Asian interest and the rising domestic consumption will support this.

While the temperatures remained below average in many parts of the Nordic countries, July was obviously off heating season and the market remained quite calm. Euro weakened against the Swedish Crown for the first time since the beginning of this year, and rather clearly, by 1.7% from June to July. This gave a downward push to the SEK value, and the opposite 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 an increase of 57 cents, or 2.21%, and closed at 26.39 EUR/MWh. The index value in SEK increased by 1.22 crowns, or by 0.48%, closing at 253.06 SEK/MWh.