Week 17 2023

AlbionDesign GmbH                                                      week 17/2023

Economically Ecological                               

€/$ 1.10068                        ↗                                      API 2 Front month $131.35    ↗

EUA DEC 23 €86.78          ↘                                          EUA DEC 24 €90.99                    ↘

32°c in Madrid. CO2 bouncing around between €85 - €95. Petcoke FOB USG around $100. Spaniards importing Russian coal regardless of sanctions. Weird times. As for biomass, it feels like we’ve pressed the pause button in the north and everyone is trying to figure out where the market will turn. For the moment, the direction is down with bigger ships feeling the pain more than coasters that can satisfy any small spot demands popping up along the North Sea or Baltic.  

 Prices:

·                     Sunflower Husk Pellet - EU Production: ↘: €110+

·                     Russian Sunflower Husk Pellet CIF Med ↘: €135/140

·                     SBP Wood pellet CIF ARA  ↘  on week 16  $185                  

·                     Wood pellet A1 FOB Baltic ↘ on week 16  €188+

·                     Certified PKS (dura) FOB Indonesia Q2 flat $130

·                     Spent olive wastes ex Works Spain flat  €122/€126

·                     Baltpool Woodchips LT €21.91/MWh ↗: LV €25.81 ↗: EE €16.00/MWh ↗

Freight:

·                      Baltic Coaster – ARA  ↘: on week 16  €19.5/20.5 on 3kt                   

·                     Black Sea Coaster  ↘: on week 16  $26.5/27.5 on 3kt                         

·                     Azov-Marmara Coaster  ↘: on week 16  $47/51 on 3kt                   

·                      Handys/Supras  flat to slightly lower on week 16 .                                                                             

Overview:

·                     Same story as the previous week. No demand and continuous production means volumes go into storage

·                     Last year was dry in the Med. This year is off to an even worse start.

Demand:

·                     Demand for product is sporadic. Piecemeal buying, if and when buying occurs.

·                     Freight is falling across all basins ex Panas and Capes, due to lack of demand for tonnage

Into ARA on the densified biomass deduct $1+- for every additional 1kt as there is a freight saving.

Links and interesting reading:

·         https://www.montelnews.com/news/1496365/spain-appears-to-break-eus-russian-coal-import-embargo-

·         https://biomassmagazine.com/articles/19969/drax-continues-work-on-potential-beccs-projects-in-uk-us

·         https://www.endswasteandbioenergy.com/article/1810367/mgt-teesside-needs-boiler-overhaul-last-throw-dice-troubled-facility

·         https://www.ft.com/content/a4d4e1ce-5444-42c7-bda6-6fda77cc2fe7

Numbers subject to change. These figures are indications and in no way a confirmation on tradable prices. For reference only.