Wood fiber costs for US pellet manufacturers fell in the 2Q/19, while Canadian pellet producers experienced higher costs due to reduced supply of sawmill residues

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Many pellet manufacturers in North America have had to increase the usage of logs for their feedstock in 2019 because of reduced availability of lower-cost sawmill residues. This has resulted in higher total wood fiber costs and increases in the pellet feedstock price indices for both Canada and the US in the 1H/19, according to NAWFR.
Seattle, USA. In late 2018, higher demand and tighter supply of low-cost sawmill residues pushed wood fiber costs higher for pellet producers in both Canada and the US. WRI’s feedstock price indices increased during the fall of 2018 and in early 2019 to reach

Source: Wood fiber costs for US pellet manufacturers fell in the 2Q/19, while Canadian pellet producers experienced higher costs due to reduced supply of sawmill residues

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