December: Pix Nordic Pellets – market quiet – price fluctuating

The industrial pellet market in Europe has remained quiet

PIX Pellet Nordic CIF 20.12.2016:

EUR/MWh 27.33 (-0.04 from previous month),

SEK/MWh 269.22 (+3.53 from previous month)

The prices in the spot market are reported to remain on a low level. Drax’ units are still not running with their full capacity and Dong’s new power station will not immediately increase Dong’s pellet consumption. Longer-term, an average annual increase of 400 000 tons is expected on Dong’s pellet consumption. The heating pellet market in Central Europe has profited from the colder weather.

New plant 1

Highland Pellets has commissioned its Arkansas pellet plant. The 600,000-ton wood pellet plant is expected to start production by the end of the year. The pellets produced at the plant are mainly destined to be exported to the European markets

New plant 2

In the Nordics, Scandinavian Biopower is investing in a 200,000-ton biocoal pellet facility to be built in Mikkeli, Eastern Finland. The pellets will be produced by torrefaction from forest chips procured in the vicinity of the plant. The end-products are planned mainly for the domestic market.


The prices reported to us for November showed small changes to both directions. The Euro strengthened again against the Swedish Crown, also this time by 1.5% when comparing the November and October averages. This has meant downward pressure on the Euro value and the opposite on the SEK value. After removing the highest and lowest 10% of the price quotes, the PIX Pellet Nordic index value in Euro terms, inched down with the help of the strengthening currency, but only by 4 cents, i.e. by 0.15%, and closed at 27.33 EUR/MWh. In Swedish Crowns, the benchmark headed north by 3.53 crowns, or by 1.33%, and closed at 269.22 SEK/MWh.


For index specifications please visit foex web site:  Next PIX will be released on Tuesday January 17, 2017 at 12 noon Helsinki time. Ljungblom