February 2016 BALTPOOL biomass exchange trade overview

2016 03 22

Early warmth makes biomass cheaper.

During the last winter month, participants of the biomass exchange paid for biomass less. The weighted average biomass supply price in February was 149 EUR/TOE, whereas in January it amounted to 154 EUR/TOE.

Last year heating was considerably more expensive.

This season we can see significant changes in the prices of woodchips compared to the preceding heating season. Buyers on average paid 162 EUR/TOE for woodchips delivered in February 2015, while the price in February 2016 was 149 EUR/TOE. This decrease in the prices is associated with the growing market liquidity and competition among buyers. Considering the growing interest in the Lithuanian market on the part of Latvian biomass suppliers, the biomass prices are likely to remain low in the foreseeable future.

Buyers normally purchase biomass at prices lower than they expect.

Analysis of the statistics of orders placed and contracts concluded based on them shows that sellers that compete with each other often offer prices that are lower than buyers expect. This has enabled buyers to save over EUR 65,000 since the start of the year. In 2015, thanks to competition, buyers were able to save EUR 2.1 million.

The first fuel peat purchase contract concluded.

In February, fuel peat was included in trade in the exchange and the first fuel peat purchase contract was concluded. Buyers have also welcomed one more novelty: starting from February, wood pellets are grouped according to the wood pellet standards ENplus-A1, ENplus-A2 and ENplus-B approved by the European Pellet Council. The introduction of the standards enables buyers to select products more carefully, as boilers used to combust this type of biomass are sensitive to biomass quality.