Pix Nordic Pellet June: Slight price increase in SEK

Stable price in Euro – increasing price in SEK according to FOEX Pellet Nordic CIF index by June.

EUR/MWh
28.72   (‐ 0.11 )  Confidence interval: 27.84 ‐ 29.60

SEK/MWh
266.95 + 1.63

Foex reports that the Baltic pellet industry is expanding.  The Swedish owned (Lifco group) Estonian Pellet plant and saw mill supplier Hekotek has announced a new order for a 120 000 t/y pellet plant to 4 Energy in Latvia.  They have also announced an upgrade for a plant in Belarussia. During the last month Graanul Invest the leading European pellet producer announced the asquisition of Langerlo power plant from Peter Leibold, owner of the bankrupted German Pellets.

On the international market Hawkins Wright Forest Energy Monitor, reports according to FOEX, that the pellet price is so low that US producers of industrial‐grade pellets can not cover their production costs. The reason is an oversupply of pellets on the European market.