A survey conducted by ENplus®, a certification scheme for wood pellets, found that 75% of certified producers have been negatively affected by the COVID-19 pandemic.
Two out of three companies are already planning the introduction of new pellet prices for end-users, according to the organisation.
The goal of the survey was to gather data on the current impact of the pandemic on ENplus certified companies and to provide information on possible future fluctuations in the market of high-quality wood pellets. 93 certified companies from 21 countries (most of which are based in Europe) participated in the survey.
More than half of the negatively affected producers and traders highlighted the reduction in end-user demand as the most significant consequence so far. ENplus said an assumption can be made that this will be the main reason behind a decrease in production and trade in the coming months.
Despite the negative trend, the organisation noted that the pandemic also brought opportunities for around 5% of respondents. Most of these companies reported an “unusual increase” in end-user demand during the first half of the year.
ENplus said almost 36% of respondents plan a small price increase, while another 26% of companies intend to decrease prices until the end of the year. In both cases, the new pellet prices will likely introduce a difference of up to 20%, according to the organisation. The survey also showed that local government aid is available, according to 71% of respondents, but less than half of them plan to apply for it. Government aid was reported for countries including Spain, the Netherlands, Italy, the UK, Poland, Belgium, Hungary and Croatia.