Wood pellets products have long been chosen and trusted by many customers. It has a much cheaper price than other products in the same segment. In 2021, there is a lot of impact coming from the aspects of whether the price of this product will change or not. That is a huge question for those who are using the product line. In today’s article, we will talk together about the price of wood pellet 2021.
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Impacts on the price of wood pellets 2021
In 2021, the price of wood pellets continuously changes from time to time. It is subject to impacts from external factors that affect its business operations as well as the production of this product.
COVID-19 pandemic
Appearing from the beginning of 2020 until now, the COVID-19 pandemic is causing a lot of difficulties for industries. Especially in that is the wood pellet industry. To prevent the spread of the disease, almost all production line factories had to close completely. This lasted for months of a complete freeze on current and future plant operations.
When factories stop working, it means that the fuel source will be wasted and no more goods will be imported. A large number of wood pellets produced for export and sale to businesses are wasted and cannot be consumed. Some customers because of the order to stay away, only buy necessities. Wood pellets for other uses are only sold in very limited quantities.
Supply increased but demand decreased, making the price of wood pellets 2021 unstable. Sometimes the increase is very high, but sometimes the decrease is very deep. At times, the price of wood pellets dropped sharply to push away stagnant products but there were no customers to buy because they had to buy other more necessary foods.
Products in other fields increased sharply
As the epidemic has not shown any sign of abating, the wood pellet industry has been seriously affected. When the source of other products is increasingly scarce, the price will increase. This impact causes the price of wood pellets to fall deeply to push away stagnant items. Some parts of the business still place orders, but the quantity is too small to continue production activities. This makes the price of wood pellets 2021 always low and a big loss for manufacturers.
Outstanding product advantages
Wood pellets are considered as future energy products. Its characteristics imply the integration of various functions. The convenient variety of this product is a huge advantage that makes customers prefer to use it. It provides long-lasting combustion, very large heat dissipation, low pollutant gases and it is renewable. It is these things that have helped the price of wood pellet 2021 not to be high but too low for sale.
The change of price of wood pellet 2021
So that you can see more clearly the change in the price of wood pellet 2021 compared to previous years. We will provide some of these figures later.
According to UNECE, the output of wood pellets increased by more than 4% over the same period in 2019 and 34% compared to 2016. These figures show that despite the low cost of production, the selling price of wood pellets is quite a bit higher. Because during this period the amount of consumption is much larger than the quantity produced.
To avoid this situation taking too long, wood pellet manufacturers had to increase work. The result went from 6.5 million tons to more than 12.2 million tons in a short time of time. The number of goods is high and the demand is still high the price of wood pellets remains the same. Sometimes, the price is pushed up a little higher than other items on the market.
That was before the outbreak of COVID-19. Recently increased production but suspended activities, the number of goods in stock is very large. The price of the wood pellets market in countries around the world decreased deeply. The UK before the epidemic was 50%, after the epidemic, it decreased to 34%. According to statistics in the second quarter of 2021, the import price of wood pellets ranges from 150 to 200 USD/ton. The terrible impact of the pandemic has made wood pellets not retain their real value. It is constantly depreciating affecting future production and supply.
The statistics related to the price of wood pellet 2021 we have shared with you. Through those data, we can understand that the price of wood pellets has suffered a lot of impacts from many sides. Although a promising product, if not quickly improve these indicators. Wood pellets will not be able to bring out their full potential. If you have any problems you want to comment on or want to ask more about the price of wood pellets, please contact the Farmers® website. We will find out and solve it together with you. Thank you for reading our article.