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April 3, 2020

Raw material supply for wood pellet industry causes concerns as many sawmills are closing

  Expectations of a downturn in sawmill activity — a likely result of the ongoing coronavirus pandemic — has prompted concerns over wood pellet raw material supply and stalled discussions for winter 2020-21 deliveries.  A decline in timber demand, as a result of the coronavirus outbreak, could prompt a decline in sawmill activity in the Baltics, North America and central Europe. Sawmill residues are a key wood pellet raw material, and a spate of closures would likely increase wood pellet production costs.  "The closure or downturn at sawmills in the Baltics over the coming weeks is ...

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