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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.

Jul 10, 2018

Market Comments

PIX Bioenergy - Forest Biomass Finland

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

The EU has agreed on the Renewable Energy Directive update (REDII). The new binding target for the share of renewable energy in 2030 is 32%, which can still be adjusted in 2023. The annual increase target in renewables-based heating and cooling is 1.3 percentage points. The parliament will hold the final vote on the directive most likely in September.

According to the Luke statistics, logging residues covered half of the forest chip trade during Q1/2018 in Finland. Pruned stem wood covered about 40% of the trade, while the remaining 10% was divided between unpruned stem wood and stumps. The most valuable grade was pruned stem wood and its prices went also up from last year. Furthermore, Luke reports that the wood trade from non‐industrial private forests amounted to almost 6.5 Mm³ in Finland in May. This is more than double the April volume, and also up by 35%, y‐o‐y. The cumulative volume over the first 5 months is also 10% higher than last year.

May temperatures were record-breaking high in Finland. With also April temperatures higher than average, the heating need in late spring was lower than usual. After removing 10% of the extreme values, the PIX Forest Biomass Finland Index showed a decrease of 81 cents, or of 4.46%, and settled at 17.49 EUR/MWh.