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Biomass industry drives up wood raw materials prices

10/07/2009
The European demand for wood raw-materials has been growing over the last few years in response to the growing number of bio-energy, pulpmill, wood panel and sawmill firms.

Wood fibre, wood chip and small diameter logs have all seen their prices rise as a result of the growing demand for these raw materials.

Germany and Sweden in particularly have seen an increase in investment in biomass development over the past year and, as a result, the prices of wood chips and sawdust have risen to meet the prices of hardwood logs.

Reports from Sweden suggest that the demand for ‘energy wood’ is rising and that small logs that would have gone to the pulpmills are now being sold to the bio-energy plants to turn into renewable energy.

This demand for forest biomass is expected to lead to an increase in intensive forest management schemes, which focus on increased utilisation of forest resources across Europe, according to Wood Resources International.

Prices of wood chips and pulpwood are expected to remain high in Europe as a result of the new emphasis on wood biomass within the energy sector. This price increase is also possible in the US where there has also recently been a fair amount of investment in biofuel development.



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