Pellet prices hit a 20-year high. Will they fall, and when?

Serbia’s pellet market has reached its highest price level in two decades, even though summer has not ended. The surge has prompted consumers to buy earlier than usual, while domestic producers struggle to keep pace with demand.

Prices have risen by as much as 52% compared with last year, according to Nova ekonomija. Branko Glavonjić, a professor at the University of Belgrade’s Faculty of Forestry, said current demand is several times greater than domestic production.

“These current prices are the highest in the last 20 years, since pellets have been produced and sold in Serbia,” Glavonjić told Nova ekonomija. He said factories are operating regularly but cannot produce as much as retailers could sell.

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These current prices are the highest in the last 20 years, since pellets have been produced and sold in Serbia.

Consumers have started buying in July and August instead of waiting until October, creating what Glavonjić described as market fever. He urged households not to pay any price out of fear that costs will rise further.

“Do not rush and pay at any cost, because there will be enough pellets, and this pressure on the market should ease over the next month,” he said. The sustainability of current prices remains uncertain, with possible state intervention under discussion and producers aware that excessive prices could push consumers toward other fuels.

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Do not rush and pay at any cost, because there will be enough pellets, and this pressure on the market should ease over the next month.