From the Director’s Desk: April Results – A Spring Tale of Two Regions, Save the Date – PFI Fly-in Scheduled for October 17-18
April Results
The standout performance revealed by the EIA’s April data reveal from the Monthly Densified Biomass Fuel Report was a second straight month of production in the East. Producers there pushed out 96,345 tons, a new record in the region for the month of April. This follows a record-setting March where the East saw 97,632 tons, bringing the two-month total to 193,977 tons, well above the 177,043 tons produced in March and April of last year. Through the end of April, producers in the East have produced 50,000 more tons of pellets than last year. Sales in the region have been stronger than last year, but not by 50,000 tons. Sales in April were 69,234 tons (the strongest ever in April), a nice bump from a stronger than normal April last year when producers sold 62,398 tons. Inventory in the region climbed to 134,379 tons, compared to the 167,132 tons of inventory that was laid up at April’s end last year.
Production in the West lies in stark contrast to the East, at least in the data shared so far by the EIA. In April, producers in the West made just 29,246 tons, down from 33,462 tons last year. March production in the West was also down compared to 2022. Through April, producers have made 131,634 tons through April this year compared to 133,197 tons in January – April of 2022. This dip in production is happening in spite of stronger springtime sales in the West. To date, producers have sold 129,976 tons of pellets in the West compared to 95,658 tons last spring. This production dip paired with stronger than normal sales has the inventory position in the region at 24,241 tons compared to more than 67,000 tons of inventory last year. Pellet inventory in the West will have to climb rapidly to reach the 91,886 ton high water mark from last year. This data point will be one to watch over the summer.
The story of the year so far has to be increased revenues for producers. Through April producer revenues have exceeded $100 million, compared to $73 million YTD last year at this time. Producers have not only sold more pellets, they’ve sold them for more per ton as the industry continues to adjust to inflationary pressures across their supply chain.
Save the Date – PFI DC Fly-In – Wednesday, October 18
Please pencil in a Pellet Fuels Institute DC Fly-in on Wednesday, October 18. We will have afternoon preparation and a dinner out on Tuesday, October 17. Additional details to come. Please consider making an investment of your time to talk about your business. It is vital to our interests to help policymakers understand how we do what we do. DC in the fall is beautiful.
