The price of wood pellets in Switzerland is up 20% over the last 12 months, according to Patrick Schmutz, a wood pellet expert, reports RTS.
According to Schmutz, the price rise is due to a cold 12 months, especially last spring, and the success of wood pellet heating. More and more pellet-based heating systems are being installed in Switzerland. In addition, global demand for wood has been high, particularly in the US where the pandemic encouraged people to renovate and build second homes.
However, the recent rise in prices follows a fall in price of 15% over the last five years.
Probably the biggest price factor going forward is the weather, given the current low level of stock, said Schmutz. To avoid further price pressure, it is important that consumers avoid any urge to stockpile, he said.
Wood pellets in Switzerland contain 77% Swiss wood. This leaves 23% of the product exposed to the vagaries of the international market. Schmutz thinks that while the price of wood used for heating in Switzerland is less volatile than gas and oil, there is a seasonality to its price. Wood pellets cost more in winter than they do in summer, making it this the best time to stock up, said the expert.