Australian wood pellet exports hit record 1H high

Australian wood pellet exports hit a record high in the first half of 2020, boosted by shipments to the UK and the Netherlands in the first and second quarters of the year, respectively.

The country exported around 56,000t of pellets in the first half, up from 9,000t in January-June 2019. Wood pellet exports also reached a new high for any quarter in April-June this year, with Australia shipping 29,000t, compared with 479t exported in the second quarter of 2019.

The Netherlands was the largest recipient of Australian wood pellets in the second quarter, with the country sending just under 29,000t. Australia sent two shipments to the Netherlands in the second quarter — 17,000t in April and 12,000t in May. This was the first time Australia had sent wood pellets to the Netherlands.

Both vessels destined for the Netherlands departed the port of Albany on the west coast of Australia in the second quarter, bound for Rotterdam. The 58,000 deadweight tonne (dwt) KN Future departed Albany on 29 May, laden with wood products — likely wood pellets — arriving in Rotterdam on 21 July before moving to Dordrecht the following day. And although the cargo was not disclosed, the other likely vessel was the 32,000dwt Lowlands Brabo, which departed Albany on 4 April and arrived in Rotterdam on 18 May.

The UK was the second-largest recipient of Australian wood pellet supply in the first half, with one vessel departing for the UK in the first quarter and delivering just under 27,000t. The 39,000dwt Brighten Trader arrived at the port of Tyne, on the northeast coast of England, where UK utility Drax and Czech-Slovak utility EPH have storage and unloading facilities for their respective power plants in Selby and Lynemouth.

The only other country Australia exported to in the first half of the year was Japan, shipping just 70t. Australia exported 8,000t of wood pellets to Japan in the first quarter of 2019.

The average fob Australia wood pellet price was A$207.20/t ($148.74/t) in the first half of 2020, up by 4.5pc on the year from A$198.21/t in January-June 2019.

By Jamie Aldridge

Australian wood pellet exports t