Supply tightness in the industrial wood pellet market may continue throughout 2023, but will depend on the outcome of European power price caps and supply-side factors. Expected high forward power prices for 2023 could hold spot wood pellet prices well above their 2021 average, but eventual volatility will depend on how well stocked utilities are going into 2023, as well as final decisions on the proposed EU and UK on power price caps. Russian gas flows into Europe expected to be significantly lower in 2023, with LNG likely unable to fully offset the drop in pipeline gas ...
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