At the start of the year, the price of wood pellets in Germany has once again slightly decreased, according to the German Pellet Institute (DEPI). The average price for January is reported to be €327.20 per ton, marking a decrease of about 0.6% compared to the previous month. This translates to a cost of 6.54 cents per kilowatt-hour of heat from pellets. Notably, there is a significant price advantage over heating oil by 36% and natural gas by 34%.
DEPI Managing Director, Martin Bentele, attributes the current attractive price to the abundant pellet supply in January. Two leading pellet trading portals, heizpellets24.de and holzpellets.net, have also noted declining prices until mid-January. However, both platforms indicate that pellet prices are now stabilizing just above an average of €300 per ton.
As of January 19th, heizpellets24.de records a price of €301.59 per ton, holding steady for several days. Meanwhile, holzpellets.net reports €303.08 per ton with a slight downward trend. This development is welcomed by pellet users at the beginning of the year, providing cost savings and ensuring a reliable fuel supply for the remaining winter months.
Despite the current favorable conditions, DEPI cautions that due to ongoing winter weather and associated demand, longer delivery times and potential price increases should be anticipated. In January 2024, regional differences in wood pellet prices (for a 6-ton purchase) are observed, with Southern Germany at €323.21 per ton, Central Germany at €325.43 per ton, and Northern/Eastern Germany at €333.05 per ton.
For larger quantities (26 tons) traded in January 2024, prices are as follows: South at €307.19 per ton, Central at €308.63 per ton, and North/East at €316.87 per ton (all prices including VAT). Pellet buyers are advised to consider these dynamics, balancing the current cost advantage with potential challenges arising from winter weather conditions.
