Feb 17 2016
|Pellet Nordic CIF||EUR/MWh||29.42||– 0.67||28.74 – 30.10|
Index is based on previous month’s data.
For price conversion between price per ton and price per MWh, a coefficient of 4.8 is used, if not otherwise informed by the price provider.
According to the Hawkins Wright Forest Energy monitor, there is a large surplus of industrial pellets in the ARA region due to a drop in demand from European consumers.
German Pellets has recently filed for insolvency. The reasons for the European woes are reported to be e.g. the low price of oil, recent warm winters and wrong investments made in the past. According to some sources, German Pellets’ Louisiana plant is not currently operating, and also in Q3 2015, the plant’s utilization rate was under 50%.
However, much of the increase came from the US South, where also the above mentioned German Pellets Louisiana plant is located. Exports from the Gulf Coast increased by 54% reaching over 0.55 MT in Q3/2015. Canadian pellet exports have been shifting from Europe to Asia. The 6% reduction recorded in Canadian exports to Europe was compensated by a 50% increase in pellets exported to Japan and South Korea. Wood pellet producer Enviva Partners plans to open a pellet plant in North Carolina next year. The products from the plant are destined to power plants in Europe and other parts of the world.
Data published by FOEX Indexes Ltd Feb 16.
Edited by Lennart Ljungblom business.conbio.info