At the beginning of this year the prices for wood pellets were unchangeably low. However in February there is a tendency for increasing the fuel granules prices by 0,8 per cent compared to January.
In Germany wood pellets mainly used for domestic heating. After the oil rose in price and severe 2011 winter the biofuel industry started its intensive development. Still further prices sharp falling and less colder two previous winters caused market overproduction and price reducing.
The market overproduction was a result of companies’ intense activity. Annually a bunch of new companies appeared at the biofuel market in Germany. But further lack of sawmill residue became fatal to many companies and lead to a number of bankruptcies and consumptions.
Annual production capacity amounts to 3,5 mln tons in Germany. Due to the low demand this amount has fallen to 2,2 mln per year
Most of wood pellets manufacturers and suppliers in Germany received ENplus and DINplus certificates. The ENplus certificate was introduced in autumn 2010 and by the end of 2011 almost 2/3 of all produced fuel granules got their certificates. Such a result was achieved as the manufacturers and suppliers kindly supported the new certifying system as an additional chance both to prove the product quality to their customers and to stay competitive within the biofuel market.
According to the research led in Germany the wood pellets prices rose by 0,8 per cent in February compared to January and amount to 256 euro per one ton. However these numbers are 10 per cent lower than that in February 2014.
The researchers noticed the crude oil costs were 3 per cent above the wood granules price however the previous month there was a 18,8 per cent difference.
The researchers found out the wood pellets prices variety depends upon the geographical location. The most expensive appeared to be pellets from the northern part of Germany. The purchase of the six tons amount will be around 263,28 euro per ton. The same quantity in central part of Germany will be less expensive and stand for 255,91 euro per ton. The lowest price for wood pellets is in southern part. To buy a six tons amount you have to pay only 225,28 euro per one ton.
The bulk purchase in the amount starting from 26 tones will cost 241, 95 euro per ton in the southern part of Germany in February 2015. There is an option to save a bit and buy pellet in north-east Germany. The current price for the large orders in this region is about 241,42 euro per ton. The highest price for the large orders is in the central part of Germany and stands for 238,96 euro, tax included.
Firing wood pellets is 30-40% less expensive than the fossil fuels however its currently low price still attracts a lot of consumers and they keep using old fuel boilers instead of replacing them with the modern pellet heating systems. Though the German analytics forecast wood pellets prices will grow up again to the level of 2014 once the crude oil prices are stable.