Source Article

EXCERPT

Many orders cause the price of wood pellets to continue to rise in August. One reason for this is to be found in the insecurity of the customers. The national average price for pellets is €682.98/t (purchase quantity: 6 t). This corresponds to a price increase of 34.5% on the previous month and 194.4% on the previous year.

According to the German Pellet Institute (DEPI), this corresponds to 13.66 ct/kWh when converted to the heat supply. Despite the holiday season and corona-related staff shortages, the pellet trade in Germany is working to the limit in order to supply new customers in particular. Existing customers with remaining quantities in stock should refrain from placing an order for the time being, according to the DEPI report.

“Hammer purchases” on the pellet market?

“Not only pellet customers are surprised by the sharp price jumps, even within the industry nobody could imagine such a situation until recently,” emphasizes Martin Bentele, Managing Director at DEPI. “So far, owners of a pellet heating system have been able to remain calm despite the uncertain energy markets, but the upheavals caused by the war have undermined the usual framework conditions. Like most sectors of the economy, the pellet industry is suffering massively from this.” It is understandable, Bentele continues, if heating operators now want to stock up on pellets for the winter. However, he asks that, in order to calm the market, pellets should only be ordered if they are actually needed.

Regional pellet prices

According to DEPI, there are the following regional differences in the price of pellets in August (purchase quantity: 6 t): In southern Germany, pellets cost €675.58/t. The average price in the Central region is €679.97/t, in the North/East Germany region it is €714.38/t. Larger quantities (purchase quantity: 26 t) are traded in August under the following conditions (all information includes VAT):

  • South: €662.59/t
  • Middle: €663.74/t
  • North/East: €690.49/t

High pellet prices and long delivery times – what are the reasons?

Above all, DEPI cites the following main reasons for the rising pellet prices and the longer delivery times:

  • Very high demand from existing customers
  • many new customers who have replaced their fossil heating
  • increased raw material prices and high energy costs in production and logistics

The post Pellet prices in Germany at unprecedented levels appeared first on Global Wood Markets Info.

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