Wood fibre costs rise for pellet manufacture

European wood pellet manufacturers are finding that, due to the rapid expansion of the industry, wood fibre costs are rising, according to Wood Resource Quarterly.

The supply of lower cost sawdust is no longer sufficient to meet the industry’s raw material needs and they are increasingly turning to pulpwood and wood chips. In so doing, they are now competing with both wood-based panel manufacturers and pulpmills for raw material.

Predictions are that, due to this increased competition from the biomass sector, panel manufacturers and the pulp industry will continue to face higher costs, even in weak markets for forest products.