OCTOBER 2018 ENERGY EXCHANGE: TRADE OVERVIEW

2018 11 20

The trade turnover of BALTPOOL Biomass Exchange decreased from EUR 16.66 million to EUR 10.51 million in October, the amount of wood chips sold decreased by 37% compared to September. This could be explained by the fact that this month, i.e. on October 2, was the deadline for the conclusion of six-month supply contracts for the heating season. Compared to September, the amount of wood chips sold under long-term contracts decreased by 70% this month. However, compared to the previous month, the volume of biomass purchases by heat producers, whose purchase strategy is based on weekly and monthly contracts, doubled (to 30,990 toe). A more active SPOT market promoted competition between biomass sellers accordingly. Interestingly, after October 2, when the BWCS Lithuania index reached its highest point this year, i.e. 210.79 EUR/toe, the index began to decrease at the middle of the month, reaching 196.06 EUR/toe at the end of the month, i.e. it decreased by 7%.

Contracts concluded at auctions in October were distributed evenly: one-month supply contracts accounted for 35% of the total amount of contracts concluded, long-term supply contracts 32%, one-week contracts 17%, and the rest part were contracts for reserve product.

10 2018 Trade Overview