Wood pellet imports to the UK down 24% year-on-year
As reported by the North American Wood Fiber Review produced by Wood Resources International, wood pellet imports to the UK fell 24% year-over-year in August after record high imports during the first half of 2016.
The United Kingdom is by far the largest importer of wood pellets in the world followed by Denmark, South Korea and Belgium.
In the 2Q/16, the UK imported record volumes of just over two million tons, which was 11% higher than the previous quarter and 21% more than in the 2Q/15. Pellet producers in Southern US continue to be the major suppliers to the UK, accounting for about 50% of the total import volume in the 2Q/16. The other major supplying countries are Canada and Latvia.
Pellet manufacturers in the US South have been a reliable and steadily growing supplier to the UK over the past five years. In 2012, the UK imported less than half a million tons from the US and in 2016, shipments may reach more than eight times as much, according to the North American Wood Fiber Review.
According to the North American Fiber Review, the surprising Brexit vote earlier this year to leave the EU is unlikely to impact near-term pellet exports from North America to the UK as supply contracts remain in place, and official negotiations regarding the EU exit process are yet to begin. However, in the longer term, the decision to stay outside the European Union could impact policy decisions regarding bioenergy incentives with subsequent market impacts.
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