May 17 2016
PIX Pellet Nordic CIF 17.5.2016:
EUR/MWh 28.83 (-0.11 from previous month),
SEK/MWh 265.31 (-3.39 from previous month)
In April, the temperatures in some parts of the Nordic countries were higher than on average, but in some parts the difference from the long-term average was only limited. Prices reported to us included changes to both directions, with declines dominating.
Again, Euro weakened against the Swedish Crown in April 2016 by 0.9%, compared to the March 2016 average. This meant an upward pressure to the Euro-value and the opposite to the SEK-value. After removing the highest and lowest 10% of the price quotes, the PIX Pellet Nordic index value moved downwards both in Euro-terms, by 11 cents, or by 0.38%, ending at 28.83 EUR/MWh, and in Swedish Crowns, here by 3.39 crowns, or by 1.26%, and closed at 265.31 SEK/MWh.
According to the Hawkins Wright Forest Energy Monitor, the oversupply situation and some political uncertainties have kept the pellet market challenging. This is also seen in prices, which have reportedly kept falling in the ARA area, with an over 20% drop, y-o-y.
On a global scale, an increase in pellet consumption is still expected, but with reducing pace. The pellet production capacity exceeds significantly the global demand, hence making also the global market oversupplied.
This has caused financial troubles in many companies, German Pellets, which is under an insolvency process, as one of the major ones.