Malaysia, Wednesday February 7, 2018 – The heating pellet sector has grown steadily in the past decade. Unlike the industrial pellet sector which is policy driven, the heating pellet markets are primarily driven by the comparative costs of heating fuels. Pellets have historically been the lowest cost fuel for heating in most regions. Low crude oil prices and therefore low heating oil and propane prices have recently challenged pellets’ position as the lowest cost heating fuel.
However, based on expected petroleum prices from 2018 onwards it is likely that the heating pellet markets will resume their traditional growth. The heating markets are forecast to have an increase in demand of about 9.5 million metric tonnes per year from current levels by 2025.
SOURCE: RISI Global Pellet Demand Outlook 2015, European Pellet Cuncil, HPBA US and CA stove dare 2016, analysis and forecast adjustments by FutureMetrics