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High pellet prices and shortages already at the beginning of the season

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High pellet prices and shortages already at the beginning of the season

Although the heating season has just begun, Bosnia and Herzegovina. citizens complain about the difficulty in obtaining pellets, that is, that there is a shortage on the market, but also high prices, while some producers say that there will be no new deliveries before February.

The company “Drvoprodex” from Banjaluka says that they are not currently accepting orders for this year and that they will start accepting new orders only in February next year.

“The current price of the pallet is 535 KM including our transport”, the company explains, adding that they do not know what the new prices will be.

“During the summer months, we had almost no orders, and then at the end of September and the beginning of October, interest increased sharply, so we can no longer accept orders”, they state from “Drvoprodex”.

A similar situation exists in the Sarajevo company “Drvosjeca”, which operates through representative offices in several cities throughout Bosnia and Herzegovina.

They state that pellets are currently out of stock and that they do not know when new quantities will be available. Prices, they point out, depend on the class.

“A2 class pellets are currently available at a price of 670 KM per ton, while A1 class reaches up to 690 KM per ton. We are currently not accepting new orders,” the company stated.

Ratko K. from Trebinje, who has been inquiring about the price of pellets these days, says that he has not been able to buy yet, because, as he states, the demand is huge.

He adds that the price per ton this season is about 100 marks higher than last year in this period.

“Last year, I paid 360 marks for a ton of pellets plus transportation, which is about 40 marks. While this year, it is 470 marks, plus transportation,” he said.

That the market in BiH needs an additional amount of pellets is confirmed by Goran Ivanović, representative of pellet producers in BiH, who explains that the unexpectedly high demand caught the producers off guard as well.

“During the almost dead summer season, due to minimal demand and low prices, producers reduced production. Even exports were not better than in previous years, so nothing foreshadowed such a large demand that appeared from the beginning of September. In the first wave, all quantities on the domestic market were sold out, and then order lists began to be made,” Ivanović pointed out.

He explained that due to the high demand, the lack of pellets in the previous two months was also evident, as well as the high prices at some distributors.

“In cooperation with the relevant ministries in Bosnia and Herzegovina, we are doing everything possible to stabilize the pellet market, to prevent wild price increases and to supply every consumer with the required amount,” said Ivanović.

As he said, pellet production has increased by about 70 percent since September.

He explains that there are certain parts of the market where there is still a shortage, and for this reason the FBiH Ministry of Trade, in cooperation with producers, has published a list of producers who have pellets available for quick delivery.

Let us remind you that, as “Nezavisne novine” wrote at the end of September, the pellet cost from 466 to 580 marks, depending on the city in which it was purchased.

We also remind you that recently the FBiH Government, at the proposal of the Federal Ministry of Trade, made a decision to limit the price of pellets.

As they stated, by decision, the highest selling price of pellets cannot be higher than 480 KM plus VAT in the retail trade, per ton in all packages. This decision will apply until December 1, 2025, they write Independent newspaper.

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