Raw material markets for biomass power plants and wood pellet mills are spotty here at the end of third quarter. Competition for biomass is less intense through most of the region compared to the previous quarter, though some spot market activity is mildly overheated.
Wood pellet producers find hardwood roundwood and chip procurement a challenge, with competition from hungry pulp mills. Unsteadiness and high prices in the Northeast's wood markets can be attributed mainly to dicey weather, supply infrastructure weakness, and competitive cross currents.
During August, the region dried out a bit after a rainy first half, allowing some catch-up on inventory builds at consuming mills. But is it too little too late? Wood buyers are concerned that any minor headway could be neatly eradicated by fall mud 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.