At the beginning of August, pellet prices fell to 245 euros per ton for the first time in three years. This confirms the expectations of buyers who assumed a further decrease in pellet prices. The expectation that prices will continue to fall in August is clearly reflected in the behavior of buyers: on the specialist portal Holzpellets24 this week, around 87% of pellet buyers believe that prices can still fall and it is better to wait before buying. At the end of July, 81% shared this opinion, compared to 79% of customers four weeks ago. Thus, expectations have increased for a further decrease in pellet prices in August 2024, as was the case last year.
Pellet prices continue to decline, so many customers have decided to wait to buy. At the end of July in Germany, for the first time since November 2021, the price of pellets fell below 250 euros per ton. At the beginning of August, the price dropped to 245 euros per ton. The experts at Heizpellets24 note that this applies to the purchase volume of 6,000 kg of certified wood pellets, including an additional delivery fee. Buyers are now forced to spend 15-20% more for bagged pellets. One of the reasons for the drop in prices is a significant supply on the market that exceeds demand.
In August 2024, pellet prices fell below EUR 240 per ton in some regions. In the previous year, pellet prices also fell sharply in August after rising until mid-July. This year, many buyers expect a similar development of prices, although they are already significantly lower than a year ago. In August 2023, pellet prices fell by around €25 per tonne to €365 per tonne, and in September 2023 they fell by another €15. Data for 2024 shows that even with significantly lower prices, buyer activity remains low. In fact, wood pellets are now significantly cheaper than they will be in 2023, according to Heizpellets24 experts. On average in the country, wood pellets now cost a little less than 245 euros per ton (for bulk products, with a total purchase volume of 6,000 kg).
Thus, pellet buyers are currently paying approximately 35% less than at the same time last year. In many regions, pellet boiler owners can buy even cheaper: in several federal states, suppliers offer wood pellets at a price of around 240 euros per ton. Such low prices for pellets have not been observed since November 2021. The main reason for the fall in prices is that the supply far exceeds the demand. Most suppliers try to stimulate sales through further price reductions. Compared to the beginning of 2024, pellets now cost €60 less per ton, and compared to August 2023 (€380), buyers are now paying €135 less per ton. However, the price difference between the federal states remains significant. Despite this, pellet prices in most countries fell below 250 euros per ton. In Bavaria, Hesse, Thuringia, Saxony and Thuringia, buyers are now only paying between €239 and €244 per tonne.
