NOVEMBER 2018 ENERGY EXCHANGE: TRADE OVERVIEW

The trade turnover of BALTPOOL biomass exchange in November decreased twice compared to October: from EUR 10.51 million to EUR 5.81 million, the amount of wood chips sold was 29 thousand toe, i.e. 37% less compared to the last month. It is likely that a warm November had the strongest effect, therefore the demand for fuel by short-term contracts did not increase, compared to last November, when 16% more biomass was purchased under one week contracts. This month, the average value of concluded contracts dropped by 28%, while the weighted average price of transactions decreased by 12% compared to October (from 224.19 EUR/toe to 198.27 EUR/toe).

Changing prices were also reflected in the BWCS Lithuania Index, which consistently went down throughout November (the biggest change was -5%) and reached 190.84 EUR/toe at the end of the month. The total index change per month was -3%. Negative changes in short-term contract prices are likely to occur in the coming month. The course of trade after 11 December shows that:

• the decreasing price of short-term contracts returned to the level of the previous year – the value of the BWCS LT index fell to 187.56 EUR/toe as of 11 December 2012, while one year ago, on 12 December 2017, the value of the index was 192.14 EUR/toe;
• BWCS LT index dropped by 12% compared to October (the value of the index was 210.79 EUR/toe on 2 October 2018, when the price peak was reached;
• this is the first time since the beginning of calculation of the index value in 2016, when the price of biomass in the winter season (the index value was 184.92 Eur/toe on 4 December 2018) is the same as in the summer season.