The world market for biomass and pellets

The pellet market is one of the fastest growing markets in the LPK in the world. In addition, pellets are one of the most traded goods internationally.

Leaders in the export of wood pellets are the United States and Canada. Large volumes of supply for export also come from the Baltic States (Latvia, Estonia, Lithuania), Russia, Portugal, Germany and Austria. Outside Europe, major supplier (more than 0.5 million tons in 2015) is Vietnam. Belarus, Bulgaria and Ukraine completing the list of Top 20 exporters in the world with volumes of 0.13-0.16 million tonnes in 2015-2016.

Russia's role is obvious, but at the same time, it is far from leaders. Supplies from Russia in 2015 amounted to 0.93 million tons, in 2016 – 1.07 million tons (source: UN Comtrade). Shipments from the United States amounted to 4.7 million tonnes in 2015-2016. From Canada at 1.6 and 2.4 million tonnes in 2015 and 2016, respectively. Delivery from Latvia – 1.6 and 1.7 million tons in 2015 and 2016, respectively. The top 5 largest exporters shipped almost 65% of the global volume of international trade in pellets. Other countries from Top 20 exporters shipped about a quarter of the global total. The share of other countries (outside the list of the Top 20 exporters in the world) account for just over 10% of the global total.

Weighted average price (average pellet industrial and private sectors) for the Russian Federation on the terms of FCA factory or FCA/FOB border is one of the lowest in the Top 20, and barely more than $ 100 per ton. Prices almost across the range of supplier countries is markedly reduced in 2016 or remained at a comparable level. The only exception is the price increase from Germany (in the face of almost double falling of volumes).

From the countries-importers, the picture is much simpler: the Top 5 countries (UK, Denmark, Italy, South Korea and Belgium) have on imports for almost 80% (!) of the global volume of international trade with pellets, the other countries of the Top 20 importers buy about 15% of the global total, the share of other countries (outside the list of the Top 20 importers in the world) account for just over 5%.

About 90% of the world (international) trade of pellets is in the direction of only 10 countries. And only 2 of these countries are not in Europe (South Korea and Japan). That is, in fact, every major manufacturer is almost certainly tied to these areas – Europe, South Korea and Japan. Within Europe dominates Britain – the volume of international purchases of pellets amounted to about 6.5 million tons in 2015 and increased to 7.1 million tons in 2016. In second place is Denmark, but volumes are much lower – 2.1 million tonnes in 2015-2016. Among the Top 5 importers noticeable growth was also from South Korea – with 1.5 million tonnes in 2015 to 1.7 million tons in 2016. The price level (with the same reservations on the mix of products and conditions of deliveries) was decreasing in all the major importing countries.

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Translated by «Yandex.Translator»