Biomass Markets, Prices Rise off Bottomed Cycle

Woody biomass prices in the U.S. peaked in late 2008 and early 2009 and fell until the second quarter of this year when they probably bottomed out for this cycle, according to WRQ. Currently, costs for biomass are the lowest in California and the U.S. Northwest, averaging about $35/odmt for biomass sourced from the forest industry. Demand for woody biomass in the U.S. South has slowly increased and as a result, biomass prices have trended upward the past four years. Pellet prices in Sweden have gone up every quarter since late 2008 and are now substantially higher than in Central Europe. More information about the WRQ timber, fiber, and pulp reports is available online.

TAPPI
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