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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.

Nov 21, 2017

Market Comments

PIX Bioenergy - Pellet Nordic

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Pellet Market – According to the Hawkins Wright Forest Energy Monitor, the wood pellet supplies are tightening in all regions. This has pushed the spot prices up and e.g. the ARA area spot prices are estimated to have reached the same level as two years ago. Also, the wildfires in Portugal last summer have damaged pellet production and logistics, while the sellers in the Baltic Region seem to be holding up their volumes in hope for better prices.

According to the AEBIOM Statistical Report 2017, the 2016 total pellet production in the EU amounted to 14.0 MT, while consumption totaled 21.7 MT. The total European numbers were 16.6 MT and 22.3 MT, respectively.

The ENVI committee of the European Parliament voted in favour of changes in the Renewable Energy Directive draft. This very large entity including a variety of renewable energy criteria became more favourable from the point-of-view of many industries, including the energy sector.

Temperatures were near the long-time averages in most parts of the Nordic countries in October, while there was again a lot of variation within the month. From September to October, the Euro showed strengthening against the Swedish Crown, and the monthly average exchange rate went up by 0.8%. This meant a further upward push on the SEK value, and the opposite pressure on the Euro value. After removing the highest and lowest 10% of the price quotes, the PIX Pellet Nordic index value in the Euro terms showed an increase of 81 cents, or of 3.05%, and closed at 27.41 EUR/MWh. The index value in SEK headed north by 9.93 crowns, or by 3.91%, ending at 263.51 SEK/MWh.