From the Director’s Desk: July Biomass Densified Fuel Report Data Released
July Biomass Densified Fuel Report Data Released
The data:
Production - July 2024 - (5-year average)
East 70,435 tons (96,393 tons)
South 12,059 tons (20,916 tons)
West 21,078 tons (38,997 tons)
U.S. Total 103,562 tons (156,306 tons)
Sales - July 2024 - (5-year average)
East 63,797 tons (94,246 tons)
South 36,405 tons (30,341 tons)
West 12,805 tons (29,506 tons)
U.S. Total 113,007 tons (154,092 tons)
Inventory – July 2024 – (5-year average)
East 198,646 tons (159,101 tons)
South 62,742 tons (56,313 tons)
West 100,281 tons (77,011 tons)
U.S. Total 361,669 tons (292,425 tons)
This week the EIA released its July data set for its Monthly Densified Biomass Fuel Report. In June a surge in sales trimmed inventory levels pushing them closer to the 5-year average but producers again stayed off the production throttle, making just 103,562 tons, a seven-year low. Production in the West is well off its five-year average of 38,997 tons tallying just 21,078 tons this July. A 45,000/yr producer in the Western region is listed as “temporarily not in operation”, which explains 3,000-4,000 tons of the shortfall, but that still leaves 13-14,000 tons that just aren’t there this year. It is worth noting that inventory levels in the West finished the month at 100,281 tons, the highest summertime inventory in the region ever. Producers in the West clearly see products piling up and have rolled out of the throttle.
I’m also careful to extrapolate too much from the data as one missing or late report and a number could change dramatically. Also, the data set indicates that the U.S. total inventory increased by about 34,000 tons from June to July, but production in July couldn’t even cover sales for the month. I’ll reach out to our colleagues at the EIA and see if they can offer some guidance.
A month ago, I reminded Pellet Wire readers that in 2018-19 the industry had built a strong summertime position of 363,835 tons only to see the low fuel light come on in February when inventory dipped below 50,000. Producers got back into the throttle hard in March to make sure everyone could finish out the season.
In Minnesota it feels like summer hasn’t yet gotten the memo that it's time to pass the torch. The 10-day forecast has a few overnight lows in the 40s, but just as many daytime highs in the upper 70s.
