PIX Pellet Nordic CIF 19.3.2013 : EUR/MWh 30.23 (+0.15 from February 19th), SEK/MWh 257.21 (-2.13 from February 19th)

PixNordicPelletIndexmarch2013

 

Grade Index                     Value Change          Confidence interval

Pellet Nordic CIF

EUR/MWh   30.23 + 0.15 29.56 – 30.90

SEK/MWh 257.21 – 2.13

Pellet Market – The central European residential and commercial heating pellet markets keep on developing further. In Germany, there’s a new incentive for households, launched from March 1, which allows obtaining low interest credit when switching to renewable energy in residential heating. Also in Austria, the government is taking measures which support those households installing pellet burners to replace heating systems originally based on fossil fuels.

The prices of pellets have been unusually high in Central Europe, as the market keeps on growing while the raw material supply remain tight. The side effects of this situation, though, have not been seen in the industrial pellet markets, reports Hawkins Wright’s Forest Energy Monitor.

In Sweden the Swedish Pellet Producers Association reports partly opposite statistics compared to Finland. 2012 exports of Swedish pellets grew almost 10 %, as import instead decreased about 25 % compared to year 2011. The Swedish pellet market volume amounted to almost 1.7 million tons in 2012. The Finnish production of wood pellets in 2012 totalled 252 000 tons, reports Finnish Forest Research Institute. This is 18 % less than year before. Finnish pellet exports were also down last year, 55 % less than year 2011. Almost all Finnish wood pellets exported were delivered to Sweden or Denmark. Wood pellet imports to Finland were doubled compared to the year 2011, being 28 000 tons. Heat and power plants in Finland increased their usage of domestic pellets by 16 %. The pellet market in Finland is expected to grow during year 2013 as new pellet consuming power plants are installed, although from a quite humble base.

Euro value against Swedish crown went down again. The February monthly average EUR/SEK exchange rate was 1.3 % lower than in January. There were both up and downwards movement in the prices reported to us. The PIX Pellet Nordic Index calculated with February prices stood at 30.23 EUR/MWh, up by 15 cents, or 0.5%, from the January benchmark value. The sinking value of Euro led the index benchmark in Swedish Crown to go down again, by 2.13 crowns, or by 0.8%, to 257.21 SEK/MWh.

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Next PIX will be released on TUESDAY April 16, 2013 at 12:00 noon Helsinki time