Pellet caused chaos in BH. Market: Prices over 500 KM, many are returning to wood

The use of pellets is considered more environmentally friendly and simpler, but the moment the prices suddenly jumped, all of its advantages fell into the water. The law of supply and demand imposed a new price for a popular energy source, provoked suspicion of artificial shortages in the market, and those who took care of environmental protection and did not want to smash hands with wood and coal, now have only one goal - to warm up this winter, which way.

Prices of pellets are more than 500 hp per ton, the manufacturers claim that they are focused only on the domestic market, traders that have not raised their prices, and a growing number of citizens decided to go back to coal and wood .Woodland from Wood on September 15th stopped exporting the pellet to meet the needs of domestic customers. However, they face a number of problems."The problem is that other pellets promise people pellets and instead of complying with the agreement they export it," Woodland told us.

The situation was, say, maximally used by traders who bought pellets at off-season, lower prices, and sold it at a much higher rate."They were ordered in July and August and were paid at the prices that were then actual and sold at 400-500 KM. Traders are now looking for pellets, but we are trying to sell it only to end customers who have small furnaces. Also, we are meeting and high prices of raw materials, because the owners of sawmills, due to the high prices in the stores, think that the producers sell pellets at high prices. The wholesale price of pellets is 330 KM plus VAT, "Budimir said.

Hifa claims that they do not have pellet stocks and that they import it, and that the price at which they are sold are formed exclusively on the principles of market economy.

"All more serious pellet traffickers are forced to import pellets in order to comply with signed contracts and supply their customers. We believe that such an action has led to the strengthening of supply and stopping further price growth of pellets in the BiH market.We believe that any company individually or jointly can not do pellet shortage and create artificial crisis of this energy source in BiH, it is necessary to know that a similar situation exists in neighboring countries as well as in Western Europe. The deletion of certain producer giants in the EU has led to problems in the market there, with inevitable reflections on the Balkans and in countries the region has a similar scenario as in BiH, so we need to know that there is not enough pellets in Croatia, Serbia, Macedonia or other countries, "Hifa claims.

No data from the imported pellet

Woodland points out that the price increase is a bad advertisement and that the newly created situation could lead to massive imports of cheaper and worse pellets that will be sold at high prices on the domestic market. The BiH Chamber of Commerce does not have information on the imported pellet, as it is claimed to belong to the category of wood waste and can not be separated from the chipboard or pilots.

"The problem is that nobody stored the pellet, we advised buyers to buy in May, June and July, when the price is more favorable, but everyone is waiting for the winter. We had the offer to import pellets from Bulgaria and Ukraine, but we did not want to risk it. what kind of pellet is and we would do ourselves damage if it is of poor quality, "Woodland said.

Senigor claims they do not make money on pellets that sell, or that they only take 20 KM to cover the cost of transportation in part.

"The current price of pellets in Senigor is 440 KM per tonne with VAT and transportation in the territory of the Sarajevo Canton, but we have minimal quantities because there is a huge demand. We did not store quantities and now we are really embarrassed to tell buyers that the price of pellets is 500-600 KM, and a few months ago it was 300 KM. At one time we boycotted producers when prices rose, but we decided that it was more useful to sell by our purchase price with a small correction for the extra cost of transport that we have to take to the address of our customers, "said Senigor CEO Alem Omerhodzic.

Bh. pellets due to quality required in the foreign market

It claims that currently only pellets of domestic producers are sold because in most cases it is made of beech wood, while the side pellet is mainly made of less caloric wood and therefore is of poorer quality.

"However, due to the lack of volumes and the costless price, we will be forced to import a certain quantity of pellets at a lower price. I believe that many producers are digging for themselves a pest with an abnormal increase in the price of pellets before the season, without taking into account the potential long-term consequences of their business decisions. demand is the main reason for the increase in the price of pellets in the local market. Pellets produced in BiH are much better than pellets produced in other European countries and therefore our pellets are required in the markets of Italy, Austria and other countries, which are markets that are ready to pay the pellets at a much higher price than the inhabitants of Bosnia and Herzegovina are in a position to do, "said Omerhodzic.

He believes that the relevant institutions should be involved in the whole story, because it is difficult to introduce any restrictions or limit the prices on the free market.

"I believe that pellet production is an enormous opportunity for BiH to develop mass production and ensure its own method of heating our homes. Mass production of pellets would be an ideal solution for the problem of heating and cleaning of many degraded forests. ministries are in charge of creating a plan and incentive for pellet manufacturers, "says Senigor's executive director.

Nevertheless, despite the high prices, it concludes that pellets, as an environmentally friendly product, are still one of the more economical home heating products if compared to the price of electricity or gas.

• 9 Oct, 2017
• 1970 views