A better supply situation causes the prices for wood chips to rise more slowly in Germany.

The prices for wood chips continued to rise in the second quarter of 2025, but much more moderately than in the previous quarter. According to the German Pellet Institute (DEPI), the average price for the A2 quality class is now € 33.22/Srm net or 3.69 ct/kWh with a purchase of 80 bulk room meters (Srm). This corresponds to an increase of 3.81%. In the A1 quality class, the price increased by 5.04 % to € 40.51/Srm or 4.96 ct/kWh.


Improved supply situation
According to DEPI, the market situation has noticeably calmed down: "The price development is currently much more even than at the beginning of the year," says DEPI Managing Director Martin Bentele. "Many sawmills have increased their cutting capacity again. As a result, more sawdust is available, which improves the supply and relieves the market.“ Therefore, wood chips remain significantly cheaper than fossil fuels. The price advantage over heating oil is about 55%, compared to natural gas about 63%.

Demand remains high, but supply is assured
Nevertheless, the demand for wood chips remained high in the first two quarters. At the same time, contract terms have been shortened in many regions. There is no longer a shortage in several application areas, which contributes to more flexible procurement.

Source: DEPI