September 2019 Energy Exchange: trade overview
In autumn, the need for biomass grows at BALTPOOL exchange
In September, the turnover of the BALTPOOL biomass exchange increased by 72% compared to August (from EUR 2.729 million to EUR 4.700 million). In September, the turnover increased due to increased activity in concluding long-term transactions and transactions for reserve products. By the end of September, Lithuanian heat suppliers secured under long-term contracts 59% of the biomass required for the heating season.
A total of 32,871 TOE of biomass was acquired in September, which is a 63% increase compared to August (20,115 TOE). Most biomass (47%) was purchased under one-week contracts, 17% was purchased under one-quarter and half-year transactions, and 33% accounted for one-month transactions. Compared to August, the weighted price under the concluded one-week transactions increased by 2% from 125.4 EUR/TOE to 127.79 EUR/TOE. The price under one-month transactions also increased by 4% from 133.91 EUR/TOE to 139.38 EUR/TOE, and the price under long-term contracts decreased by 1% from 162.64 EUR/TOE to 160.91 EUR/TOE. Consequently, the yearly decrease of prices under one-week transactions was 35% (from 196.71 EUR/TOE), 31% for one-month transactions (from 201.81 EUR/TOE) and 37% for long-term transactions (from 254.31 EUR/TOE).
In September, the BWCS LT index, similarly to the summer in general, remained stable and, in the course of the month, was between 120.85 EUR/TOE and 124.48 EUR/TOE (recorded at the end of the month). The value of the index recorded at the end of September increased by 1% compared to the value recorded at the end of August (120.89 EUR/TOE). Comparison of the value of the index recorded at the end of September 2018 (201.1 EUR/TOE) shows that in the same period this year the value of the index is 40% lower.
In September, the need for biomass deliveries increased by nearly 11% compared to August (22,827 TOE). A total of 25,234 TOE of biomass was delivered: 49% was delivered under one-week transactions, 30% was delivered under one-month transactions and the remaining 21% was delivered under one-quarter and half-year transactions. The price of biomass delivered in September increased by 3%: the price of biomass supplied in August was 121.32 EUR/TOE and the figure was 124.4 EUR/TOE in September. In the same period last year, biomass was supplied for a price that was 29% higher, i.e. 175.02 EUR/TOE.