EU Wood pellet imports may soar 25% in 2014: USDA

SEATTLE (Scrap Monster): According to report by US Department of Agriculture (USDA), the EU wood pellet imports are expected to surge during 2014. The domestic output by the region is unlikely to meet the rising demand. Consequently, the region may have to depend on more quantities of imported wood pellets.

The total wood pellet output by the EU region had totaled 11.5 m tonnes last year. The USDA report forecasts the region’s output to grow by nearly 9% during 2014. This production rise will be insufficient to meet the consumption growth by the region. The EU consumption is expected to rise 14% to reach 20.0 m tonnes this year. The capacity growth in the region will not be adequate enough to meet the growing Western European demand.

The rise in demand is expected to increase the wood pellet imports by EU region by more than 1.4 m tonnes to 7.5 m tonnes in 2014. The imports from Canada, Russia and the US will witness significant growth, the report said. The total value of pellet exports from the US is likely to top $1 billion by 2020. The value of wood pellet exports from the US had totaled $374 million during 2013. In view of the projected demand growth from the EU region, the US has recently made considerable investments in pellet capacities.