Pellet prices rise amid raw material shortages in BiH and Serbia

The pellet market in Bosnia and Herzegovina and Serbia is facing significant challenges ahead of the heating season, characterized by rising prices and raw material shortages.

In Bosnia and Herzegovina, producers report that a lack of wood biomass is driving prices up. While official manufacturer prices range from 550 to 650 KM per ton, retail prices have reached as high as 830 KM per ton. Goran Ivanović, President of the Association of Certified Pellet Producers in BiH, noted that while 70 percent of citizens secured supplies early in April at lower rates, current production is being immediately sold upon manufacture due to empty stocks.

In Serbia, pellet prices have seen substantial increases, with some Belgrade warehouses charging between 40,000 and 50,000 dinars per ton. While major warehouses report generally good supply levels, smaller retailers face irregular deliveries and higher costs. Market analysts suggest that consumer distrust regarding previous supply shortages has contributed to a psychological shift in the market, leading to increased demand and price hikes during the pre-season period.