German Pellet prices continue to fall in January. Overall, wood pellets cost as much as they last did around 2 years ago. In six federal states, wood pellets cost less than €300 per tonne in the second week of January and in other federal states the €300 mark is not too far away.

Demand from pellet buyers remains surprisingly high. "Due to the very favourable prices, household stockpiling activity picked up again. 2023 will also be the year with the highest demand in online trading to date," say the experts at Holzpellts24.

One reason for the continuing high demand is the large number of new pellet heating systems installed during the energy crisis. However, another important aspect is that pellet buyers are monitoring the market much more closely than in the past and reacting immediately to changes in prices. This stronger focus on current market developments has also recently led to continued strong customer interest.

Another important aspect, however, is that pellet buyers observe the market more closely than in the past and react immediately to falling prices. This stronger focus on current market developments has also recently led to continued strong customer interest.

According to the experts at Heizpellet24, the national average pellet price fell to EUR 303 per tonne in the second week of January. The market observers also assume that "pellet customers in Germany could see a price per tonne starting with a two again in 2024 for the first time in over two years." This is certainly what the typical seasonal price patterns of the past suggest.

After a rather sideways price trend in January and February in normal years, pellet prices usually fall significantly at the end of the heating period from March or April, the experts at Holzpellets24 expect. According to market observers, this could also happen this year.


In six federal states, wood pellets cost less than €300 per tonne in the second week of January and in other federal states the €300 mark is not too far away.

Why pellet prices will continue to fall in 2024 ?

On a national average, pellet prices reached their lowest level for two years around the beginning of December and continued to fall in January. According to most pellet experts, one reason for the sharp fall in pellet prices is the sharp drop in the price of wood and wood by-products.

The collapse in prices on the timber market has also depressed prices for most other wood products and wood by-products such as wood pellets in recent months. An increase in the price of wood pellets is therefore only to be expected if timber prices also rise significantly again or if the supply of timber and timber by-products becomes noticeably tighter due to reduced timber production. However, this is not yet apparent. On the contrary: the severe construction crisis is keeping pressure on the timber market.

In addition, there is another aspect: the recent strong increase in domestic production of wood pellets apparently continues to exceed the (also growing) domestic demand from private and commercial customers, pellet experts believe. This structural supply surplus has also put a lot of pressure on pellet prices and is preventing or significantly slowing down an increase.

However, pellet traders cite another important reason for the persistently low pellet prices: Numerous customers stocked up very early this year at the last price low in April in order to avoid a possible price increase at the end of the year (as in 2022) or to avoid suddenly facing supply problems, as was the case last year.

All in all, all indicators suggest that pellet prices are more likely to fall further than rise.

Source: Holzpellts24