What is FOEX Indexes?

FOEX Indexes Ltd is an independent company providing audited, trade-mark registered pulp, paper, recovered paper and wood based biomass price indices.

May 15, 2018

Market Comments

PIX Bioenergy - Pellet Nordic

Copyright©FOEX Indexes Ltd.

Pellet Market – The spot prices for industrial wood pellets remained at/near the same level as earlier this year while the spot market has become quieter with the rising temperatures and the ending of the heating season. The Hawkins Wright Forest Energy Monitor reports that the inventories in Scandinavia are low, possibly leading to deliveries also during the summer.

RISI’s North American Bioenergy Forecast projects the North American pellet production growing between the years 2018-2022. This trend is driven by the industrial demand in Europe and Asia. Europe is expected to remain as the largest pellet market also in the coming years, covering about two thirds of the global demand.

In many parts of the Nordic countries, April temperature was above the long-term average. This speeded up the end of the heating season. The Euro continued strengthening against the Swedish Crown in April, and the monthly average exchange rate went up by 2.1%. The stronger Euro means again 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 a decrease of 56 cents, or of 2.03%, and closed at 26.98 EUR/MWh. The index value in SEK stayed at precisely the earlier level of 279.83 SEK/MWh.