Wood fiber costs are rising for wood pellets manufacturers in Europe

Because the industry is expanding rapidly, reports the Wood Resource Quarterly
WEBWIRE – Friday, May 29, 2009

The expanding wood pellet industry in Europe is increasingly relying on pulpwood and wood chips for its raw-material needs, as the supply of lower-cost sawdust cannot meet the fast rise in demand for wood fiber. The biomass sector is now competing with both the wood-based panel manufacturers and pulpmills for wood residues and logs, reports the Wood Resource Quarterly.

Seattle, USA. June 2009. The competition for wood raw-material in Europe has been intensifying the past few years as sawmills, wood-panel manufacturers, pulpmills and bio-energy facilities expanded capacity during 2006 and 2007 and therefore increased the usage of roundwood and wood residues. Lately, the pulp market has weakened resulting in lower demand and prices for pulpwood in all countries in Europe. However, the decline has been less pronounced in markets where the pellet industry has a strong presence.

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