In August, the German pellet price reached €680/t and thus tripled compared to the average price recorded from 2006 to mid-June 2021, before the massive price increases. These new purchase possibilities of the pelleting companies are changing the sawmill byproduct and log wood market in Central Europe.
Record prices for sawdust and wood chips
When it comes to sawmill byproducts, the prices of both wood chips and sawdust reached new record levels in Austria. In August, wood chips cost €20.1 to €23.8/st, while buyers pay €17.8 to €22.6/st for sawdust. The extremely strong demand for wood fuel is also driving prices of industrial softwood and hardwood. In Germany and Austria, there are reports about the paper industry making purchase offers for sawlogs that are “coming along” with industrial wood. “The paper industry is buying mixed batches which include sawlogs to compensate for the lack of wood chips,” forest owners report. The prices for these mixed batches are only around €20 to €25/m³ lower than that of “pure” sawlogs.
