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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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Apr 18, 2017

Market Comments

PIX Bioenergy - Pellet Nordic

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Pellet Market – Hawkins Wright Forest Energy Monitor reports that the supply and demand balance in the pellet market has kept improving. Power plants in Europe have increased their pellet use and this has reduced spot volumes from the market. Political uncertainties impact the future market predictions, as the Brexit process has begun, and France will have their elections soon. In the US, president Trump’s actions have raised the question of their likely negative impact on the renewable energy development.

According to Pelletsförbundet, the total pellet deliveries in Sweden totaled about 1.6 Mt in 2016. About 40% of the pellets were used by large power plants. The Swedish import-export balance of pellets was almost neutral in 2016.  According to Luke (Natural Resources Institute Finland), the wood pellet production in Finland in 2016 was 271 kt, which is 10% less than in 2015. In 2016, exports decreased by 40% to 34 kt, and imports by 16% to 50 kt, compared to the previous year.

The milder-than-average weather prevailed in many parts of the Nordic countries also in March. The Nordic industrial pellet market has remained stable. In March, Euro strengthened by 0.5% against the Swedish Crown. This meant upward pressure on 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 inched down by 28 cents, or by 1.01%, and closed at 27.33 EUR/MWh. The index value in SEK decreased by 1.24 crowns, or by 0.47%, and closed at 260.40 SEK/MWh.