Categories: Business

Towards a price drop in 2024?

After experiencing major disruptions, particularly due to the war in Ukraine, the pellet market seems to have stabilized for a while. While more and more French people are choosing this means of heating, it should not decrease significantly in 2024.

Will pill prices drop in 2024?

The price of wood pellets should not fall below the threshold of 300 euros per ton in 2024, according to the forecast of Eric Weil, General Delegate of Propelat, the national pellet heating association. Currently the price of bulk pellets is €449 per tonne. , compared to €285 in 2019, suggests France 3. According to Neozone, the price of a 990 kg pellet was 460 euros or €0.465/kg on January 11. On the same date a tonne of bulk pellets (1,000 kg) cost €449, or €0.449/kg. So we are far from the prices of 2015 when a ton of pellets was trading at 269.90 euros.

For its part, the site kelwatt.fr estimates that 2024 should not see a drop in the price of pills. This is due to several reasons, especially the increase in production costs, the cost of wood in the forest which has increased. At 25 to 34%, sawdust plus electricity bills which have increased by 2 or 4. Additionally, carriers have increased their rates by more than 50%. Thus, the cost of a pallet, i.e. 66 bags of 15 kg, is multiplied by 3.

According to experts, there are other reasons behind the explosion in pellet prices from 2022, especially the commercial hype that encourages the French to buy pellet stoves with arguments of ecology and savings.

The law of supply and demand also plays a role in this rise in prices. In fact, demand explodes during this time of year, causing stocks to dwindle and thus prices to rise significantly. Additionally, for fear of running out of stock, some users do not hesitate to order quantities in excess of their pallet requirements. In fact, the Bois de Choufage site attests that 11 times more people than usual were buying pallets.


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