Higher demand for pellets despite price hike – Waiting lists being formed, price per ton up to 44,000 dinars

The price of pellets increased by two to four thousand dinars per ton during the summer and now ranges from 38,000 to as much as 44,000 dinars.

Some warehouses left without stocks

Waiting lists are being formed in some parts of Serbia, while some warehouses remain without stocks.

Marko Marinkovic from the PE “Vojvodinasume” told RTS that the main reason for the price hike was increased demand, and the raw material base, production and other costs had remained stable.

Marko Marinkovic responsibly claims that there are currently no significant changes that would cause the price to rise, except for demand itself and market psychology.

He states that citizens have started purchasing firewood earlier this year, which is good, but that the larger number of buyers in a short period of time has created pressure on producers and traders.

Pellet production, he explains, is continuous and cannot be increased suddenly in line with current demand.

– When a larger number of people come to look for it in a short period of time, then production cannot keep up. This is where the effect of increased demand occurs – says Marinkovic.

Production capacity of 560,000 tons

However, he adds that there is no danger of shortage. Production capacity in Serbia amounts to around 560,000 tons of pellets per year, while consumption during severe winters is around 450,000 tons.

The number of households using pellets has increased in the last few years from around 100,000 to 160,000, but production capacity is also growing at the same time.

– There will be no physical shortage of pellets, because we have considerable pellet production capacity in Serbia – emphasizes Marinkovic.

According to him, the raw material base is stable, production in state forests is regulated and safe, and significant potential also exists in private forests.

Potential regulation on price limitation

Wood prices in state-owned enterprises cannot be increased without the consent of the competent authorities.

Marinkovic estimates that the price of pellets above 35,000 to 38,000 dinars per ton is not justified.

– Anything above 35,000 to 38,000 dinars per ton is not fair and is not a realistic price – states the guest of the Morning Program.

If prices continue to rise unrealistically, it is not ruled out that the state will again limit the price of pellets by regulation, as it has done in previous years.

– It is not impossible, if prices tend to rise unrealistically – concludes Marinkovic.

JP Vojvodinašume Petrovaradin

Marko Marinković

pellet

firewood