PixNordicIndex2014-06-17kl1150

FOEX Indexes Ltd – PIX Bioenergy – June 17, 2014
Grade Index                                                       Value Change              Confidence interval
Pellet Nordic CIF             EUR/MWh              28.96 – 0.65                28.20 – 29.72
SEK/MWh               261.50 – 5.96
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.

Pellet Market – The mildness of the winter, especially in Central Europe, but also in the Nordic countries, has been felt by the pellet producers. Especially the prices of residential pellets have come down, and the pellet stocks are relatively high. Also in the Nordics, the pellet trade has remained rather quiet.

In the European industrial pellet market, though, there has been some firming in the prices, as reported by Hawkins Wright Forest Energy Monitor. This is reported to stem from Drax’s commissioning of its second converted unit and of the increase in co-firing in Poland. In Poland, biomass power generation increased by 24% y-o-y in Q1/2014.

On the other hand, the UK industrial pellet demand is expected to go down in the near term future, at least partly due to the damage caused by the fire at E.ON’s Ironbridge unit earlier this year. E.ON has decided to close the unit down permanently, as repairing it would not be financially viable.

Helsingin Energia, one of Finland’s largest energy companies, will start co-firing wood pellets at their plants in Helsinki in the fall. The supplier and logistic plans are still to be finalized. In the future, with a 5% to 7% pellet mixture, the annual use can rise up to 100 000 tons per year.

The temperatures were rather warm in the Nordics also in May, and with the heating season ending, many of the prices reported to us for the May pellet business pointed downwards, but many prices also remained the same. Euro weakened by a minimal 0.03% against the Swedish

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Next PIX will be released on TUESDAY July 15, 2014 at 12:00 noon Helsinki time