The price of wood pellets rose sharply in June 2023 compared to the previous month by 13.6 % to 408.41 Euro/t and is just below the price in June 2022. The background is an atypical high demand.

At the beginning of winter 2021/22 the price increase for wood pellets had begun, in October 2021 the DEPI pellet price was still in the usual range with a decrease of 6 t at 248.08 Euro/t and then jumped to 267.05 Euro/t in November and 303.13 Euro/t in December. From July 2022 to December 2022, the DEPI pellet price was over 500 Euro/t, the highest 6-t delivery price was stated for September 2022 with 763.76 Euro/t.

For June 2023, the German Pellet Institute (DEPI) has now determined a pellet price of 408.41 Euro/t as the federal average. Compared to May 2023, this corresponds to an increase of 13.6 % and a decrease of 5.4 %. However, in June 2022 the price with 431.56 Euro/t was 95 % higher than in June 2021 (221.35 Euro/t).

The price for one kilowatt hour of heat from pellets purchased in June 2023 at DEPI pellet price is 8.17 Ct/kWh. This reduced the price advantage to heating oil to 9 %. For natural gas there is a price advantage of around 30 % (comparison basis see graph).

Seasonal unusually high demand
Martin Bentele, Managing Director at DEPI: "Rising prices in June are atypical for wood pellets. This development continues to be linked to the excessively high storage volumes last summer, which led to empty pellet tanks for the majority of heating operators in spring and early summer of this year. This results in unusually high seasonal demand. At DEPI, we expect the demand and price situation to calm down in the coming weeks. "

Regional prices for 6 and 26 t
In June 2023, pellets cost on average 408.46 Euro/t in the middle of the Republic, followed closely by southern Germany with 408.73 Euro/t. In North/East Germany pellets with 412.50 Euro/t are slightly more expensive. The fact that the federal average in June is lower than the regional prices is based on the calculation method.

Larger quantities (26 t) are traded in June 2023 on the following conditions: South: 391.26 Euro/t, Middle: 388.77 Euro/t, North/East: 393.20 Euro/t (all incl. VAT).

DEPI pellet price
The DEPI Pellet Prize has been published monthly since 2011, until June 2020 by the German Energy Wood and Pellet Association (DEPV). It indicates the average price in Germany for 1 t wood pellets of the ENplusA1 quality class of the respective purchase quantity (delivery within 50 km, including all ancillary costs and VAT) – throughout Germany and in three regions. DEPV provides a DEPV pellet price (net) for supply contracts.

Source: German Energy Wood and Pellet Association (DEPV)