As spring weather sets in, biomass availability across North America was reported strengthening so far this quarter. Wet weather, though, has made its impacts in the South, and a late spring break-up across much of the Northern tier troubled wood buyers and pushed some price incentives for material generated in-woods.
An improving lumber market, however, has sawmills steadily increasing output as the sun shines warmer. Pent-up construction demand is expected to create a plentiful flow of mill residuals for both fuel use and wood pellet production.
Pellet demand remains much healthier than last year, sources said. As pellet shortages were common towards the end of the heating season, homeowners and retailers are now stocking up on volume so as not to be caught short again.
Many wood pellet mills are currently operating at full capacity, filling warehouses and storage yards to tee up for next season.
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.