Categories: General Date: Oct 16, 2018 Title: PIX Pellet Nordic 16.10.2018
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Pellet Market – The industrial pellet market is lacking spot deal supply as reported by Hawkins Wright Forest Energy Monitor. Supply is limited especially for pellets from the US and Portugal. The Baltic supply is thin as well. The reasons in Portugal are technical and financial while the US and Baltic supply is limited by volumes steered for contract-based deals as well as to the desire of the producers to wait for higher prices typically seen in the winter months. The hurricane Florence in the Carolinas had some but limited impact on pellet exports from the US.
Moelven Industrier ASA, a Norwegian wood products producer, will invest in an integrated wood pellet and bioenergy plant in Southern Norway. The pellet plant with 80 kt annual capacity will double Norway’s current pellet production capacity, once the plant is operational in 2020. The raw-material for the pellets will come from the company’s own sawmills.
The temperatures in the Nordic countries were higher than average also through most of September, while the temperatures dropped closer to normal at the end of the month. The starting heating season will boost also he Nordic pellet market. In September, the Euro weakened minimally against the Swedish Crown as the monthly average exchange rate went down by 0.2%. This means a small upward push for the EUR value, and the opposite for the SEK value. After removing the highest and lowest 10% of the price data, the PIX Pellet Nordic index value in Euro terms showed an increase of 1.27 euros, or of 4.70%, and closed at 28.30 EUR/MWh. The index value in SEK went upwards by 12.61 SEK, or by 4.46%, to 295.53 SEK/MWh.