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Germany Pellet Market
Pellet prices have fallen further. Meanwhile, wood pellets cost less than before the Ukrainian war. In some federal states, pellet prices are only slightly above the 300-euro mark. However, the decline in prices has slowed down significantly in recent weeks. It is possible that soil formation occurs just above the 300-euro mark.
In the first two weeks of April, pellet prices fell by another 15 euros per tonne. In the current week, it was only two euros down. There may be a gradual formation of soil at pellet prices. Wood pellets cost 325 euros per tonne in federal funds this week, the experts from Heizpellet24 report. This is less than before the Ukrainian war when pellet prices were about 350€.
In several federal states, customers already have to pay less than 315 euros per tonne. The regional lowest price is currently 305 Euro per tonne in Hesse and Thuringia. In the longer term, these are the lowest pellet prices since December 2021. With the recent fall in prices, all expert expectations have been exceeded. Martin Bentele of the German Energy Wood and Pellet Association (DEPV) told Berliner Morgenpost in January: "I expect the price 2023 to be between 400 and 500 euros per tonne. "
This forecast is significantly undercut. In normal years, pellet prices actually reach their seasonal lows during the summer months – from July to the beginning of August. Then customers usually order the largest quantities. At the moment, it looks as if pellet prices are settling at the level reached or close to the 300-euro mark and thus not repeating the seasonal pattern usual before the energy crisis.
However, the heating season in May is also over and pellet customers can wait for the further price development – without having to freeze.
Regional pellet prices almost 300 Euro
Pellet prices Bundesländer.
In mid-April, wood pellets are cheapest in Hesse, Thuringia, Bavaria and Baden-Württemberg – where customers pay between 305 and 318 euros per tonne.
An important reason for the falling pellet prices is the sharp fall in the prices of other important energy sources, i.e. heating oil, gas and electricity (for new customers). For all three energy sources, prices have fallen sharply in recent weeks and are far below the government price brakes for new customers.
"It will be crucial for further demand in spring and summer whether prices continue to fall as temperatures rise. Otherwise, the pellet market faces a summer hole followed by a hectic autumn," said the pellet experts from Heizpellet24.
However, the price differences between regional pellet retailers have remained surprisingly large as prices have fallen. In mid-April, wood pellets are cheapest in Hesse, Thuringia, Bavaria and Baden-Württemberg – where customers pay between 305 and 318 euros per tonne.
Pellets continue to cost the most in Berlin, Brandenburg and Mecklenburg-Western Pomerania – even though prices have also fallen there. There, pellet buyers have to pay between 336 and 349 euros.
Aid for households heating with heating oil and wood pellets is to be paid from May onwards. This was what the federal and state governments had to do on 30's. March agreed. The prerequisite is that household costs for pellets have doubled compared to reference prices of 2021. For wood pellets, the reference price was set about 24 cent per kilogram. The direct grant is limited to a maximum of €2,000 per household.
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