We know Estonia
24.8.2022 | Shopping

Wood pellet prices have almost tripled in the last year

Text Mark Taylor
Photo Pixabay

Wood pellet prices have almost tripled in the last year

 

The cost of wood pellets used in the heating of homes has increased nearly three-fold in the last 12 months. And, with increased demand and current shortages in the market, some companies and experts predict further shortages and higher prices this winter.

According to Argo Kivi, the head of Briketipoisid, the price of a 1000 kg pallet of wood pellets has gone up from 150 euros last August to between 260 and 420 euros today. The latter almost three times the cost just 12 months ago. He also noted that prices had already jumped from 150 to 190 euros between August and September last year.

“Just like all other fuel prices, the price of wood pellets has soared in 2022. The main reason for this is the prices of biomass and electricity, which have increased several times over. These are our primary production inputs and they certainly increase the price of the final product,” explained Raimo Oinus a marketing specialist at Graanul Invest.

However, according to Kivi, a broader driver of the price rises is the increased demand, which is outstripping supply. At Briketipoisid, they produce wood pellets made of sawdust, but because both timber harvesting and construction have reduced this year, there is therefore less sawdust on the market. And when wood production companies start heating their facilities with sawdust, there will be even less supply for the general market according to Kivi.

They are not alone, in August last year Tartu Graanul had 10,000 tonnes of wood pellets in its warehouse. Today it is essentially empty.

Despite the current shortages, these should be resolved heading into the autumn according to Ulvar Kaubi, the director of the Timber Marketing Department at RMK. However, “there’s not a single factor to be seen that might bring prices down” Kaubi added.

 

Source ERR 

 

 

To learn more about this and similar topics
Briketipoisid Graanul Invest Heating RMK Tartu Graanul Wood Pellet Price Wood Pellet Price Estonia Wood Pellets

23.9.2022 | Shopping

This weekend two design markets will take place at old factories in Tallinn

This weekend two design markets will take place at old factories in Tallinn

This weekend as part of the Tallinn Design Festival (Disainiöö), the traditional and popular design street (Disainitänav) will return. … Read more

14.9.2022 | Shopping

Sales declining at Estonian supermarket e-stores – are these services at risk?

Sales declining at Estonian supermarket e-stores – are these services at risk?

During the peak of the pandemic, Estonian supermarket e-stores saw huge increases in sales. However, as the pandemic has … Read more

30.8.2022 | Shopping

The markets of Tallinn

The markets of Tallinn

Opened in 1947, the central market (Keskturg), located in the centre of Tallinn, is a market favoured by many … Read more

25.8.2022 | Shopping

Estonia’s first IKEA store opens today

Estonia’s first IKEA store opens today

Today at 10 am the first full-sized IKEA store in Estonia will open its doors to the general public. … Read more

22.8.2022 | Shopping

Most back-to-school purchases made in last few days of August

Most back-to-school purchases made in last few days of August

According to purchase statistics released by supermarket chain Prisma, 40-50 per cent of back-to-school purchases are made in the … Read more

11.8.2022 | Shopping

One-third of Estonian shoppers are now buying the cheapest products in the supermarket

One-third of Estonian shoppers are now buying the cheapest products in the supermarket

According to a study by Kantar Emor and the Estonian Food Industry Association, a third of Estonian shoppers prefer … Read more

28.7.2022 | Shopping

From a month of just green paint to a selection beyond the imagination – Art Shops of Tallinn

From a month of just green paint to a selection beyond the imagination – Art Shops of Tallinn

Just 30 years ago, you had to go into small place in a basement in central Tallinn to order … Read more

7.7.2022 | Shopping

Prices of goods and services rose by a further 2.7% in June

Prices of goods and services rose by a further 2.7% in June

According to data from Statistics Estonia, in June, the Consumer Price Index increased by 2.7% compared to May, and … Read more