PixPelletOctober

PIX PELLET NORDIC INDEX
FOEX Indexes Ltd – PIX Bioenergy – October 15, 2013

Grade Index                                     Value Change                Confidence interval

Pellet Nordic CIF EUR/MWh        29.97                                                  + 0.14                           29.30 – 30.64

SEK/MWh                                          260.01                                                + 0.39

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 –

In July, we already brought up the RusForest’s 100 000 ton Arkhangelsk pellet plant in North-western Russia. The new unit has now secured its financing from a Russian bank. The plant is planned to start its operations during the first quarter of 2014 and the products are targeted on the European pellet markets.

A study by RISI points out, that the expanding pellet production with the concurrently rising OSB demand/production has created concerns about raw material sufficiency for these products in the US. The similar situation in Europe was one of the reasons pushing the European pellet producers to invest and start new mills in the US, but now these investments can be examined from a new perspective.

Meanwhile, the European pellet demand is expected to keep on growing, as said in a joint report from the American and European officials. The consumption growth is estimated at over 1.7 million MT from 2012 to 2013 and at 1.1 MMT from 2013 to 2014. The European production growth is expected to be only 0.15 MT in each of these years, though. Imports from North America and Eastern Europe are expected to make up the difference. Total import estimate for 2013 is 6.0 MMT, up by 1.5 MMT from 2012 and for 2014 already 7.0 MMT.

The prices reported to us for the September pellet business included mainly upward changes as well as some unchanged prices. The monthly average value of the Euro weakened against the Swedish Crown in September by 0.3% from the August average, meaning an upward push on the EUR value and a downward pull on the SEK value.

The PIX Pellet Nordic benchmark moved up by 14 cents, or by 0.47%, and closed at 29.97 EUR/MWh. In SEK, the pellet index value went also up in a minor way to 260.01 SEK, i.e. rose by 0.39 SEK, or by 0.15%, from the previous month’s value.

The News letter also include comments regarding the general economy in different areas.

By FOEX Indexes Ltd * For industrial use

FOEX Indexes Ltd – PIX Bioenergy – October 15, 2013

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Next PIX will be released on TUESDAY November 19, 2013 at 12:00 noon Helsinki time