German Premium pellets price

According to data from the German Pellet Institute (Depi), the average cost of a 6t cargo of EN Plus-certified A1-grade wood pellets decreased to €743.81/t ($731.91/t) in October, down €19.95/t from the previous month but up from €248.08/t a year earlier.

Despite the continued high cost of raw materials, the German pellet market has exhibited symptoms of declining demand along with a normalization of prices and delivery dates, according to Depi.

According to Depi managing director Martin Bentele, “the majority of private customers have now filled up on pellets for the winter and the upcoming new systems that are still to come will be supplied in the fourth quarter…supply is secured, but with chip prices staying high.”

Less lumber is required as construction projects are shelved or delayed. Because of this, there is less leftover wood in the sawmill, but it is in high demand and costs a lot.

In October, wood pellet heating was once again competitive with heating oil and retained its pricing edge over natural gas. Heating with wood pellets cost €0.004/kWh less per month, or €0.148/kWh, whereas heating oil cost €0.012/kWh more, or €0.164/kWh. And the price of natural gas for heating increased by €0.025/kWh to €0.201/kWh.

According to location, southern Germany continued to have the lowest pricing for 6t deliveries at €729.03/t, followed by central Germany at €748.31/t and northern and eastern Germany at €784.36/t.