As expected, the second half of the year starts with low summer prices for wood pellets in Germany. The price for pellets in July currently stands at € 225.34 / t (for 6t purchases), which is 1.2% less than in June and 4.8% less than in July 2019.
The drop in prices is also influenced by the reduction in VAT. Most recently, pellets were cheaper only in September 2016.
“Pellets are the cheapest in summer,” explains Martin Bentele, Managing Director of the German Energy Wood and Pellet Association (DEPV). “This is due to the good supply of raw materials and the lower demand from larger consumers. In addition, this year there will be a reduction in VAT for the climate-friendly fuels from 7 to 5 percent. ”Even in the 10-year average, pellets score with stable low prices. The industry expert predicts that the long-term price advantage of just under 30 percent over heating oil will continue in future due to the CO2 levy on fossil fuels.
Regionally there were the following differences in July (purchase quantity 6 t): As in June, pellets are cheapest in southern Germany at € 222.65 / t. It is followed almost immediately by Central Germany with € 225.67 / t and Northern / Eastern Germany with € 225.89 / t.
Larger quantities (26 t) were traded in July 2020 on the following terms: South: 210.13 € / tCentral: € 211.45 / tNorth / West: 210.51 € / t.