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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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Jun 20, 2017

Market Comments

PIX Bioenergy - Pellet Nordic

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Pellet Market – The Hawkins Wright Forest Energy Monitor reports that the industrial pellet market has kept its pace in May. The prices in the spot market have been rising, while the US suppliers are said to be off the spot market. The industrial pellet market is expected to remain healthy also in the future.

The pellet imports in Q1/2017 to the EU from outside the Union increased by 19% compared to Q1/2016. The largest import volume came from the US, over 1.5 Mt, the second being from Canada with over 450 Mt and the third from Russia with more than 300 Mt. Canadian and Russian imports grew by over 50%, while the US growth was 8%. Biggest importers are naturally the UK, with over 1.6 Mt,  the second and the third being Belgium and Denmark with about 240-250 Mt each. Danish imports of wood pellets from outside the EU in Q1/2017 increased by 200% compared to Q1/2016. Main suppliers to the Danish market are the US and Russia.

The May temperatures were above average in the southern part of the Nordics, while in the northern parts, the weather was colder than average. Euro kept strengthening against the Swedish Crown, by 1.2% from April to May. This gave an upward push to the SEK value, while 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 decreased clearly, by 1.00 EUR, or 3.67%, and closed at 26.26 EUR/MWh. The index value in SEK decreased by 6.56 crowns, or by 2.51%, closing at 254.98 SEK/MWh.