Wood pellet imports to the UK fell 24% year-over-year in August
Wood pellet imports to the
United Kingdom have gone up dramatically the past five years and are likely to
reach a new all-time-high in 2016, according to the North American Wood Fiber
Review. The US South is the main supplying region with shipments having
increased eight-fold since 2012.
Global Timber and Wood Products Market Update
- a news brief from Wood Resources
Wood pellet imports to
the UK fell 24% year-over-year in August after record high imports during the
first half of 2016, according to the North American Wood Fiber Review
The United Kingdom is by far the largest importer of wood pellets in the world
followed by Denmark, South Korea and Belgium. In the 2Q/16, the UK imported
record volumes of just over two million tons, which was 11% higher than the previous
quarter and 21% more than in the 2Q/15. Pellet producers in the US South
continue to be the major suppliers to the UK, accounting for about 50% of the
total import volume in the 2Q/16. The other major supplying countries are
Canada and Latvia.
Monthly pellet import data to the United Kingdom is reported in more detail in
a recent WRQ Trade Snapshot (NEW service) that is available to
subscribers of the Wood Resource Quarterly.
Some of the highlights in the Snapshot included:
Ninety percent of all wood pellet imports to the United Kingdom in the 2Q/16
were shipped from only three countries, the US, Canada and Latvia.
- Import volumes in August this
year fell by 24% year-over-year to the lowest level in 1½ years.
- Import prices have been fairly
stable the past 12 months with prices for US sourced pellets having been
$20-40/ton higher than prices for pellets from other supplying regions.
Pellet manufacturers in the US South
have been a reliable and steadily growing supplier to the UK over the past five
years. In 2012, the UK imported less than half a million tons from the US and
in 2016, shipments may reach more than eight times as much, according to the
North American Wood Fiber Review.
The surprise Brexit vote earlier this year to leave the EU is unlikely to
impact near-term pellet exports from North America to the UK as supply
contracts remain in place, and official negotiations regarding the EU exit
process are yet to begin. However, in the longer term, the decision to stay
outside the European Union could impact policy decisions regarding bioenergy
incentives with subsequent market impacts.
The North American Wood
Fiber Review has tracked wood fiber markets in the US and Canada for over 20
years and it is the only
that includes prices for sawlogs, pulpwood, wood chips and biomass in North
America. The 36-page quarterly report includes wood market updates for 15
regions on the continent in addition to the latest export statistics for
sawlogs, lumber, wood pellets and wood chips.
Resources International LLC
The commercial aspect of the Forestry South Africa (FSA) website, as well as the commercial side of the FSA Newsletter, is managed and run by Fevertree Media (Pty) Ltd which is a separately run entity to the non-profit organisation Forestry South Africa.