MAY 2019 ENERGY EXCHANGE: TRADE OVERVIEW

2019 06 21

Buyers already purchased 40% of biomass required for the next heating season at BALTPOOL biomass exchange.

In preparation for the next heating season, heat producers have already purchased about 40% (37.9%) of biomass required for the next winter season at BALTPOOL biomass exchange. Most biomass purchased under long-term contracts was ensured by Šiauliai (74%), Klaipėda (64%), Panevėžys (60%), and Utena (51%) counties.

“The trade of long-term contracts shows a record activity during the off-season in market. It’s only a middle of June, but around 40% of biomass required for the whole winter season is already purchased at the biomass exchange. This number is almost identical to that in the previous year when heat producers purchased biomass under the long-term contracts before and during the heating season combined (50%). A quarter lower price of such type of contracts has contributed considerably to this,” says Vaidotas Jonutis, the head of Trade Division.

The price of long-term contracts in comparison to the previous year is 25% lower and amounts to 157 EUR/TOE.

Biomass sales at the exchange for the first time exceeded ten million euro in May

The turnover of BALTPOOL biomass exchange doubled in May compared to April, form EUR 6.35 million to EUR 13.02 million. It is the first time in the history of the exchange when the turnover of a spring month exceeded EUR 10 million and reached the turnover level of autumn months.

Trade growth was caused by more active trading under long-term contracts than in April. Trading under three-month and six-month contracts increased 7 times during the month – from EUR 1.50 million to EUR 10.97 million.

The total amount of wood chips sold in May was 86,978 TOE, i.e. 2 times more than in April (46,370 TOE). Most of the biomass (81%) was purchased under three-month and six-month contracts, 10% under one-week contracts, and 9% under one-month contracts. Compared to April, the weighted price of all concluded contracts increased by 9%, from 136.89 EUR/TOE to 149.65 EUR/TOE.

The price of the BWCS LT index was decreasing during the month and reached 117.73 EUR/TOE at the end of the month (on 28 May). Such index price (117.51 EUR/TOE) was a couple of years ago for the last time, on 16 May 2017. The total monthly change of the index was 4% decrease, and during the year it decreased by nearly 19%.

2019-05 Trade Overview