2022 was an unusual year in this sector – after reaching unprecedented highs in late summer and early autumn, the rise in pellet prices came to a halt and relaxed its grip towards the end of the year.

The changes could already be sensed in the first months of 2022, when pellet suppliers, who were usually so accommodating, did not even want to hear about prices in the €160-200 per tonne (pallet) range, making it clear that they would be paid more for their products outside of Latvia.

The floodgates for prices were opened by the Russian invasion of Ukraine – wood supplies from Russia and Belarus were interrupted (albeit not immediately) and by June the price of pellets had risen to €300-400 per tonne. However, that was not all, as at one point a deficit of this product emerged on the market, with prices continuing to rise.

At the beginning of November, the manufacturer Staļi was offering them at €514 per tonne, while the Depo store in Valmiera was asking €620 for a tonne of pellets.

As the end of the year approached, prices eased slightly and in December Staļi applied a €100 discount to its product, so a tonne (pallet) of pellets would cost the buyer €360.75 excluding delivery, while on 1 January 2023, the price of wood pellets from this manufacturer was €420 per tonne, without the discount, which is no longer being applied.