Pellet prices rise in Poland and Germany due to supply shortages

Rising pellet prices in Poland and Germany are being driven by systemic supply-demand imbalances rather than illegal market practices, according to the Office of Competition and Consumer Protection (UOKiK). The surge in demand is linked to the increasing popularity of pellet boilers, supported by programs like 'Clean Air' in Poland, where approximately 77% of subsidy applications in 2025 concerned pellet and wood heating.

In Poland, UOKiK noted that production is failing to keep pace with consumer needs, exacerbated by reduced wood sales from State Forests. The upcoming implementation of the EU Deforestation Regulation (EUDR) in 2026 and 2027 may further restrict the availability of sawdust, a key raw material for high-quality A1 grade pellets.

In Germany, the market is experiencing a pre-season price spike, with bagged pellet prices exceeding 2,100 PLN per ton. In 12 of Germany's 16 states, prices have surpassed 1,800 PLN. This surge is attributed to a mass influx of customers following summer holidays and high wood costs, which are at their highest levels in 35 years. Logistics delays in Germany have also extended delivery times to approximately 29 days.