The major news in bioenergy this month concerns brisk residential wood pellet sales across US markets, with some mills are reporting near-record activity. A few producers are sold out, having all volumes committed through the end of the year, according to RISI’s Wood Biomass Market Report.
Pellet mill sources explained the run-up saying consumers ate through their supplies after a cooler than anticipated spring this year in several regions. Typically, leftover volumes carry households into fall – plus, one contact said consumers have gotten used to big-box availability and low pricing and don’t pile down pellets as they did in the past.
Anecdotal information suggests pellet stove sales are up from last year, which may also contribute to strong pellet sales. “I’ve never seen it this strong,” a Lake States pellet producer said. “We had a late spring up here, and there were no pellets left in the pipeline. There have also been robust appliance sales this year.”
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.