Wood pellets are used in Germany as a key element in eco-friendly heating solutions, reflecting the country's dedication to sustainable energy. At the start of 2024, wood pellet prices saw notable shifts, reflecting the delicate balance between supply and demand in the pellet industry, as well as broader economic and seasonal factors affecting the market.
In June 2024, the wood pellet market experienced an unexpected price drop, defying typical seasonal trends. This decline surprised traders and market analysts, as pellet prices usually rise during the summer months. According to the German Pellet Institute (DEPI), the average price per tonne in June was €282.44, marking a slight 0.6% increase from May. However, online markets reported further price declines.
By July 2024, the market saw a slight rebound, with pellet prices increasing by 1.2% compared to the previous month. This uptick was driven by rising demand as consumers began preparing for the upcoming heating season. On August 20, 2024, prices had reached around €245.25 per tonne, marking the seasonal low point.
With prices at their summer minimum and Germany's continued leadership in premium pellet production, it is an opportune time for consumers and industry stakeholders to secure their pellet supplies ahead of the heating season. Given the low price levels and government incentives, biomass is expected to become more widely used for domestic heating by the end of 2024. However, industrial demand for pellets is anticipated to remain stable throughout the year.
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