The price of solid biofuels for domestic use rose slightly in Spain during the third quarter of 2021, but heating with them is still cheaper than using any fossil fuel available on the market.
Wood pellet
In the third quarter of 2021, pellet prices to the end customer remained practically the same as in the previous quarter in all formats except for bulk in tipper trucks, a format that is always more influenced by the rise in prices at the source.
The factory price index (EXW) compiled for this quarter (Q3 2021) It does indeed point to an upward trend in the prices of bagged and tank formats, which represents a change from what had been happening in recent months.
This trend change observed in EXW has not yet reached the consumer, as what is still available corresponds to goods purchased under contracts with the old price, but we believe it will be noticeable in the next consumer price index, in the fourth quarter.
The price increases we'll see in the coming months are due to the higher costs of all raw materials related to pellet manufacturing: wood, electricity, plastic, pallets, etc. While these increases are moderate, they are nothing like those experienced by fossil fuels, and the starting point for pellets is very low.
It is important to note that the current price of the bag is quite far from the historical highs reached in Q4 2019: €302.49/t in Q4 2019 vs €283.54/t this quarter.
While it is true that pellet consumption will increase considerably this winter due to the rise in installations resulting from the increase in fossil fuel prices, the increase in pellet prices will be partially offset by the accumulated stock from the previous season.
This quarter, the price of bagged pellets has decreased slightly by -0.1% (from €4.26 to €4.25 per bag). However, the price of a full pallet has increased slightly by 0.5% (from €277.49/ton to €278.81/ton). In bulk formats, the trend has again been mixed, with a +0.1% increase for bulk pellets delivered by tanker truck (from €256.32/ton to €256.62/ton), in contrast to the significant increase of 3.2% for pellets delivered by tipper truck (from €240.15/ton to €247/ton), which, as mentioned previously, reflects the upward trend at the source.
Olive pit
As for olive pits, prices have remained stable, staying very similar to those of the previous quarter and the previous year.
The price of bagged bones has risen slightly: 0.6% per individual bag, while the price of a full pallet has increased by 0.9%. Bulk prices have risen somewhat more: 3.4% by tanker and 1.6% by tipper.
The medium-term trend is for stable prices, with slight variations depending on winter temperatures and the year's harvest. The lack of rainfall appears likely to reduce the harvest somewhat; it is expected to be between 5 and 151% lower than the previous year, although this will also vary across provinces. In any case, the final harvest will depend primarily on the weather patterns in the coming months. If this reduction in the harvest is confirmed, the price of olive pits is expected to rise slightly in the first or second quarter of 2022.
Wood chip
Regarding wood chips, prices rose for the third consecutive quarter, reaching a record high of €115.44/t. This is a moderate increase, placing the price at levels similar to those of 2019, when it reached €113.38/t (Q4/2019).
The price increase of this biofuel may have been due to the increased cost of raw materials, although the variations are still very small and it cannot be said that there is really a change in trend.
The price remains relatively close to the average of the entire historical series (€110.46/ton) with a variation of €4.98/ton.
More information and report downloads
https://www.avebiom.org/proyectos/indice-precios-biomasa-al-consumidor