In light of the new prices for industrial wood, thinning activities will probably be ramped up in 2022.
Byproducts more expensive in Germany
The price differential between Austria and Germany has reversed. A doubling of sawdust prices within a short period of time was not unusual in Germany. At the start of the new year, Holzkurier identified a new sawdust price range of €11.1 to €12.1/stere in Austria, which is a 60% rise compared to December.
This trend is driven primarily by the rapidly growing demand for pellets. As a result, pellet prices reached record highs in the DACH region in the months of December and January. Demand slightly exceeded sawdust supply (following cutting curtailments in sawmills) which led to the sharp rise in sawdust prices.
In Austria, at least three new pellet production sites will start to operate in 2022. Two of them at adjoining sawmills which will need the sawdust themselves.
Up until now, it was clear that recycling companies can always pay more for the raw material than businesses that specialize in thermal utilization. This isn’t carved in stone anymore.
Wood chip prices with a sharp rise as well
The situation is similar when it comes to wood chips. In January, prices range from €12.8 to €14.1/stere, according to the Holzkurier’s research. Compared to December 2021, prices thus saw a 49% increase.
The booming pellets market will probably also bring about an increased use of wood chips. Those who currently buy wood chips have switched to pulpwood or will increasingly do so. If oil boilers continue to replaced with pellet heating systems at the current pace, the battle for distribution of the raw material will become even fiercer.
