Wood pellet prices in Germany hit a year-long record as demand falls and costs rise.

Wood pellet prices in Germany reached their highest level in a year in November - contrary to experts' expectations. Despite a noticeable decline in demand, the market continues to show price increases, surprising both consumers and analysts.

Wood pellets, considered an environmentally friendly fuel, are commonly used in private heating systems. However, their prices have fluctuated in recent years due to supply disruptions, rising raw material costs and general trends in the energy market.

As of November, the cost of pellets in bulk is around 360 euros per tonne, while pellets in bags on pallets cost around 390 euros per tonne - this is 50 euros more than the previous price peak. In comparison, prices were also high in February, but now the bulk product has risen by another five euros.

According to the Heizpellets24 platform, the sharp increase in prices in October and November was unexpected, as forecasts indicated a possible stabilization. «The strong jump in prices caused a decline in demand — in October it was less than half the level of the previous month», the latest review says. The traditional autumn wave of purchases, when consumers usually replenish stocks before winter, also did not take place.

Despite the decline in demand, prices remain at a high level. Experts do not yet undertake to predict when this wave of price increases will end. For traders and end consumers, this means a forced adaptation to the new energy reality and uncertainty in the coming winter months.

The situation on the pellet market — Another reminder of how volatile the energy sector remains. Even products considered reliable alternatives to fossil fuels can experience significant fluctuations due to economic and logistical factors.