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ENplus survey: Negative Impact of COVID-19 on European wood Pellet Producers

Date: 09/23/2020 08:47:00 From: Clicks:

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COVID-19 has had a great negative impact on the machinery manufacturing industry worldwide. In Europe, COVID-19 not only adversely affects biomass wood pellet machines and wood pellet production line equipment manufacturers, but also negatively affects pellet manufacturers. Let's take a look at ENplus's investigation of the negative impact of COVID-19 on European pellet manufacturers.

ENplus survey: Negative Impact of COVID-19 on European wood Pellet Producers

A few months ago, we conducted a survey to gather data on the current impact of coronavirus pandemic on ENplus-certified companies and to provide information on possible future fluctuations in the market of high-quality wood pellets. A total of 93 certified companies from 21 countries (most of which are based in Europe) participated, ensuring a good representation of the pandemic impact on the small and medium-sized wood pellet business.

The results found that 75 per cent of the certified producers and traders have been negatively affected by the COVID-19 pandemic, with two out of three companies already planning the introduction of new pellet prices for end users. More than half of the negatively affected producers and traders point out the reduction in end user demand as the most significant consequence so far. An assumption could be made that this will be the main reason for a decrease in production and trade that more than half of the participating companies expect in the coming months until the end of the year.

The survey also found that local government aid is available, according to 71 per cent of respondents, but less than half of them plan to apply for it. Government aid was reported for countries like Italy, Spain, Poland, Netherlands, the United Kingdom, Belgium, Hungary, Croatia and more.

In fact, these market variations could be one of the reasons for the expected changes of pellet prices for end users. Almost 36 per cent of the respondents plan a small price increase, while another 26 per cent of companies intend to decrease the prices till the end of 2020. In both cases the new pellet prices will most probably introduce a difference of up to 20 per cent. The collected data indicates also that the chances for a price increase or decrease are expected in all parts of Europe so all end users on the continent might be affected by these changes almost equally.

Alongside the negative trend, it should also be noted that the pandemic brought some opportunities for a limited amount of certified companies (about five per cent of respondents). Contrary to the majority, most of these companies report an unusual increase in end-user demand during the first half of 2020.

The European pellet market economy is slowly recovering and I believe it will return to normal soon. As a manufacturer of wood pellet machine and biomass pellet machines, Richi Machinery is also actively fighting against COVID-19 with everyone. If you need wood pellet machine, biomass pellet machine, hay pellet machine, hemp pellet machine, organic fertilizer pellet machine, cat litter pellet machine and other products, please contact us to send you a video and quote!

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