In February 2025, we see a significant increase in pellet prices in Germany. At 346 euros per tonne, wood pellet prices reach their highest level since October 2023. This development follows a dramatic price increase since December 2024, during which prices have risen by 100 euros or 40 %. For many consumers, this increase is unexpected and is causing uncertainty on the market.
Since December 2024, we have observed an unexpectedly rapid increase in pellet prices. Many consumers had hoped that prices would stabilize again at the beginning of 2025, but these expectations were not met. Instead, prices continue to rise, reaching a new peak in February. Analysts are struggling to explain this sudden price development, which has led to a certain degree of panic among consumers.
A survey shows that 90% of potential pellet buyers are currently hesitant to place their orders. They are unsure whether this is the right time to buy, as there is a possibility that prices could become more stable in the near future. This hesitation is reinforced by the unclear market development, as there is no end in sight to the price increases. Many buyers are hoping for a trend reversal, but this has yet to materialize.
The specialist portal Heizpellets24, which regularly monitors and analyzes the market for wood pellets, reports widespread uncertainty among consumers. The managing director of Heizpellets24 explained that the current market fluctuations are encouraging a reluctance to buy, as potential buyers are waiting for more stable price prospects. This indecision is contributing to the ongoing unrest in the market and is likely to influence market developments in the coming months.
While no clear cause for the price changes can be given, experts suggest that global economic circumstances and increasing demand for sustainable heating solutions could be possible factors. This combination of local demand and global uncertainties appears to be driving further volatility in the pellet market, giving buyers a sense of tension and caution.
In the meantime, consumers have little choice but to keep a close eye on developments in the pellet market and hope for more stable price conditions. Those in desperate need of pellets are faced with the difficult decision of whether to buy now and accept higher prices or take the risk of hoping for falling prices and potentially being hit by further price rises.
