Heat suppliers took advantage of a favourable situation and already purchased a quarter of biomass required for the winter

Buyers already purchased 25% of biomass required for the winter from Baltpool biomass exchange in preparation for the next heating season. Most biomass purchased under long-term contracts was ensured by Šiauliai (70% of the amount), Klaipėda (54% of the amount), and Panevėžys (47% of the amount) counties.

 “The contours of biomass prices for the next heating season in biomass exchange are already visible. This year buyers were prompted to purchase about 25% of biomass required for the next winter season even before the summer has started. And some regions already purchased about 70% of required biomass. This is a very high rate compared to the previous year, when about 50% of biomass required for the heating season was purchased by long-term contracts,” says Vaidotas Jonutis, the head of Trade Division.

According to him, biomass buyers should be delighted about the substantially lower current timber prices in Lithuania, because the prices of long-term biomass supply contracts this year are around one third lower than in the previous year. The price of long-term contracts (160 EUR/TOE) for the next winter season corresponds to the price of the heating season in 2017.

According to Jonutis, we can only hope that cheaper biomass and advantageously concluded long-term contracts will respectively impact heating prices for the next heating season that were increased this year.

Total weighted supply price for the next heating season is 158.91 EUR / TOE, and that is 24% lower than the price formed during this whole 2018-2019 heating season.