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FOEX Indexes Ltd is an independent company providing audited, trade-mark registered pulp, paper, recovered paper and wood based biomass price indices.

Oct 9, 2018

Market Comments

PIX Bioenergy - Forest Biomass Finland

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The PIX Forest Biomass Finland index value is based on the August 2018 trading prices of forest residues and wood‐based industry by‐product bioenergy components in Finland, excluding pellets and liquid bio‐fuels.

The energy wood market is expected to be more vibrant this heating season than during the recent ones. Reasons for this include the higher prices of emission allowances, low water levels for hydro power production and declined energy wood stocks after lower collection volumes last year. If some of the planned biorefining plants will be built, this will further increase the need for energy wood and wood-based by-products in the market.

Luke reports that the wood trade from non-industrial private forests amounted to almost 3.2 Mm³ in Finland in August which is an increase from the previous year by 17%. The trade also increased from the previous month by 67%. According to preliminary numbers by Statistics Finland, the total energy consumption increased by 4% in Finland in the first half of this year, y-o-y. The main reason is said to be the cold weather in Q1. While the warmer Q2 showed a decrease in energy consumption, it was, however, not enough to counterbalance the Q1 rise. Also, better economic conditions for the industry had an impact on the rise.

In August, the warm weather continued in Finland. After removing the 10% of the extreme values, the PIX Forest Biomass Finland Index headed higher with an increase of 46 cents, or of 2.80%, and settled at 16.89 EUR/MWh.