August has brought a new flow of purchases at BALTPOOL Biomass Exchange. The turnover at the exchange grew to reach EUR 5.5 million (+61.6% compared to July), while the number of concluded contracts rose to 294, which is a 12.64% increase compared to July. The increasing activity due to the approaching heating season was the primary factor to affect the turnover growth. The quantity of biomass sold for this supply period accounted for 70.75% of the total quantity of biomass contracted in August.
Prices under long-term contracts for the heating season decreased by 1.96%. This was due to the fact that most long-term contracts were concluded in Šiauliai and Kaunas counties where biomass is traditionally cheaper. Given that September is the last month when long-term contracts for the start of the forthcoming heating season can be concluded, the weighted price under long-term contracts for the heating season in September is likely to increase.
The record-level values of orders to buy and to sell (EUR 50 million and EUR 73 million respectively) show that both buyers and sellers want to conclude long-term contracts but, more often than not, they do not succeed in setting a price acceptable to both parties. Considering the current price trends and the half-year wood prices at auctions held by forest authorities, it seems likely that buyers that wish to buy woodchips for the heating season under long-term contracts will be able to do that at a price not lower than 140–145 EUR/TOE.