Typically, as the heating season commences, pellet prices tend to surge. But this year, the trend has taken an unexpected turn.
Contrary to the usual pattern aligned with dropping temperatures, the cost of wood pellets experienced a notable decline in November. As reported by the German Pellet Institute (DEPI), the current average price stands at €350.85 per ton, marking a 5.1% decrease compared to October, representing the lowest price recorded this year. This translates to a cost of 7.02 cents per kilowatt-hour of heat generated from pellets.
Remarkably, the pellet prices have plunged by 48% compared to the same period last year, which was heavily affected by the energy crisis stemming from Russia's invasion of Ukraine. On November 17th, the trading portal heizpellets24.de reported an average price of €323.11 per ton, indicating a continued downward trajectory.
Despite this substantial drop, the pellet prices remain notably higher than in previous standard years when the cost per kilowatt-hour was significantly below 6 cents. This disparity might elucidate why, despite the onset of the heating season, pellet prices have not escalated—they still linger at a relatively high level. Historically, DEPI notes that the annual average prices for wood pellets until 2021 usually hovered around €240 per ton. Consequently, the current monthly average price maintains a notable elevation of over €100 per ton.
In Southern Germany, the average pellet price stands at €348.93 per ton, closely followed by Central Germany at €353.47 per ton. Meanwhile, in Northern and Eastern Germany, prices are slightly higher at €355.08 per ton. For larger quantities (26 tons), the rates in North/Eastern regions are €337.08 per ton, Central regions at €334.56 per ton, and in the South at €335.53 per ton (all prices inclusive of VAT).
