Energy crisis benefited wood companies: Shares increased by 700 percent

The rising prices of gas and electricity before the approaching winter in Europe led the citizens to alternative fuels.

While electricity and natural gas prices rose in France due to the Ukraine-Russian War and Russia’s restriction of natural gas flow to Europe, the public turned to wood shavings on the grounds that it was less costly for heating.

In addition, the government’s promotion of green fuel and the prohibition of the installation of oil and coal boilers for the last two years have been another reason that increased the demand for wood.

According to the Propellet data of the National Association for Chip Heating, chip stove sales increased by 41 percent and chip boiler sales by 120 percent between 2020 and 2021.

With the increase in demand, sawdust prices also increased by 300-400 euros per ton.

The share values ​​of some France-based companies, known for selling wood and sawdust, have increased by 700 percent in the stock market.

The French Federation for Combustible Materials, Fuel and Heating has recently announced that there is a high demand for wood shavings as fuel in the country.

While there was a large supply shortage in wood due to the high demand, the fear of energy shortages led consumers to stock up on wood before winter.

On the other hand, the French press wrote that due to Russian gas cuts and energy shortages, the indicative electricity price in the country on an hourly/megawatt basis will reach 1075 euros as of 2023, breaking a historical record.