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"The Bounce Back Biomass Market Conference"
“European spot wood pellet prices swung from record highs in 2019 to hit record lows in 2020 due to oversupply and the impact of COVID-19. Competition for North American supply will increase between Europe and Asia as demand grows in both regions.”
High stock levels and an imbalance between production and consumption has been the recent theme in the European wood pellet market. Demand is set to rise but the landscape remains challenging for producers positioned towards Europe over Asia.
On the supply side, consolidation continues with acquisitions and more North American volume lost to Europe with the arrival of new Asian demand. Covid likely to impact finance for new production from the US and Eastern Canada but production capacity in Russia is set to grow.
New European demand is focused on the potential arrival of new German wood pellet demand, while wood chip imports to Europe could be boosted by projects in Ireland and Netherlands.