WBMR: East Canada enters fourth quarter with favorable inventory positions

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WBMR: East Canada enters fourth quarter with favorable inventory positions

November 12, 2014 - 17:41
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Biomass markets in Eastern Canada entered the fourth quarter in ample supply. Likewise, sawmill residuals for wood pellet production started the quarter on a largely positive note.

The overall wood market eased with better weather during third quarter after a rainy first half gummed up woodland access and tested the industry’s ailing supply infrastructure. At the end of third quarter, most mills had good to adequate inventories, though shortages persisted for some on the eastern side of the region.

“Biomass availability is just correct,” a source in Quebec noted, “with no piles accumulated in the yard at the sawmills.”

Given the time of year, biomass demand is traditionally low since cogeneration plants are not fighting cold weather to produce heat. Electricity demand tends to be lower as well. “Biomass demand is not strong currently in the region,” a New Brunswick wood buyer said.

This is an excerpt from a story that appeared in RISI’s Wood Biomass Market Report (WBMR).  WBMR covers biomass projects as well as market news and prices for North America and Europe.  Click here for more information or to subscribe.