North American Pellet Market Quarterly

2017 brought some welcome relief to both domestic and industrial export pellet markets in North America.

Industrial pellet exports from the United States increased to 5.2 million tonnes in 2017, up 10.5% from the previous year (Figure on slide 5). This uptick comes after exports plateaued, increasing less than 1%, in 2016, as the market reconciled with excess capacity, and US producers lost their competitive edge due to a strong US dollar. Markets have improved significantly over the past year with European industrial spot market prices, as reported by Argus Biomass Markets, up approximately 45% from a year ago, and within a range where FutureMetrics analyzes that US producers can sell profitably.