Wood Pellet Prices Rise in May 2023
The price for wood pellets rose slightly in May 2023 compared to the previous month by 2.4% to EUR 359.41/t, but is below the price in May 2022. However, the price level is still high. This increase in price comes as no surprise as the demand for wood pellets has been steadily increasing over the years. Wood pellets are a popular choice for heating in households, and with the colder months approaching, the demand is expected to rise even further.
The price hike for wood pellets had started at the beginning of winter 2021/22, in October 2021 the DEPI pellet price was still in the usual range with a purchase of 6t at 248.08 euros/t and then jumped to 267.05 euros/t in November in December to 303.13 euros/t. This increase in price was due to a combination of factors such as the increased demand for wood pellets, supply chain disruptions, and the rising cost of raw materials.
From July 2022 to December 2022, the price of wood pellets remained stable, but it is expected to rise as we head into the colder months. The price of wood pellets is influenced by various factors such as the cost of raw materials, transportation costs, and demand. With the ongoing supply chain disruptions, transportation costs have increased, which has contributed to the rise in price.
Wood pellets are a popular choice for heating in households, especially those that are off the grid. They are made from compressed sawdust and wood shavings and are a renewable source of energy. Wood pellets are a cheaper alternative to traditional fossil fuels and are also more environmentally friendly. This is why there has been a growing demand for wood pellets over the years.
The rise in price for wood pellets is expected to have an impact on households that use them for heating. With the colder months approaching, households will have to pay more to keep their homes warm. This could also lead to an increase in demand for other sources of heating such as gas and oil.
In conclusion, the price for wood pellets has risen slightly in May 2023, and it is expected to rise even further as we head into the colder months. The rise in price can be attributed to various factors such as the increased demand for wood pellets, supply chain disruptions, and the rising cost of raw materials. This increase in price is expected to have an impact on households that use wood pellets for heating, and they may have to consider alternative sources of heating.