Biomass Exchange review – May 2020
Prices of woodchips reach the lowest level over the ETS history
In May, the price of woodchips at auctions of the Baltpool biomass exchange decreased by 1.6% compared to April and amounted to 111.99 EUR/TOE (9.63 EUR/MWh). In May, turnover increased by 28% from EUR 5.016 million to EUR 6.415 million. The increase was due to the increased turnover under half-year contracts. Quantities under half-year transactions increased by 104% from 14,400 TOE (167,472 GWh) to 29,376 TOE (341,643 GWh); their price also increased by 3% from 122.55 EUR/TOE (10.54 EUR/MWh) to 125 EUR/TOE (10.82 EUR/MWh). Compared to April, the quantities of woodchips under SPOT contracts have decreased by 39% from 16,290 TOE (304,869 GWh) to 9,906 TOE (189,453 GWh), with the price also decreasing by approximately 14% from 108.23 EUR/TOE (9.31 EUR/MWh) to 92.85 EUR/TOE (7.98 EUR/MWh).
In May, market participants purchased 57,000 TOE (115,207 GWh) of biomass at the biomass exchange, which was a 30% increase compared to April (43,782 TOE or 189,453 GWh). Most of the biomass (52%) was purchased under half-year contracts; 21% accounted for one-month contracts, 17% accounted for SPOT contracts and 10% were one-quarter contracts. As mentioned above, the weighted price under the concluded SPOT contracts for woodchips has decreased to 92.85 EUR/TOE (7.98 EUR/MWh) and thus reached the lowest price level for woodchips in the history of the ETS; the earlier lowest price, i.e. 102.79 EUR/TOE (8.84 EUR/MWh), was recorded in June 2016. Compared to the same period last year, the SPOT prices were nearly 21% lower in May this year (in May 2019, the price was 123.07 EUR/TOE or 10.58 EUR/MWh).
In May, the BWCS LT index dropped below the all-time record low figure recorded in April: by the end of May, the new figure was 93.66 EUR/TOE (8.05 EUR/MWh).
In May, the quantity of biomass delivered under contracts concluded at the Baltpool exchange decreased by almost 51% compared to April (38,247 TOE or 444,807 GWh). A total of 18,807 TOE (218,730 GWh) of biomass was delivered in May, which is a 15% decrease compared to May 2019 (257,523 GWh or 22,143 TOE). In May 2020, the price of delivered biomass was 100.76 EUR/TOE (8.66 EUR/MWh), which is a 12% decrease compared to the April price (114.78 EUR/TOE or 9.87 EUR/MWh). In May last year, biomass was delivered for a price that was 23% higher (124.17 EUR/TOE or 10.68 EUR/MWh) compared to May 2020. In May, biomass was normally delivered under SPOT contracts – these accounted for 73% of the delivered biomass; the remaining quantity accounted for one-month contracts (19%) and long-term contracts (7%).