Coniferous fuel wood in chips and particles market in Czechia

Earlier Report Observations

Between 2018 and 2020, the Czech market for coniferous fuel wood in chips and particles remained relatively stable, with annual consumption volumes hovering around 1.27 million t. Supportive EU climate legislation for biomass as a renewable energy source created a favorable regulatory backdrop, and the exemption of households heating with wood from future emission quota systems ensured long-term price stability. In 2020, increased interest in wood heating due to rising gas and electricity prices supported demand, although the VAT increase on fuel wood from 15% to 21% may have temporarily moderated volumes.

The market surged dramatically in 2021, reaching 2.09 million t, a 65% increase from the previous year. This spike was driven by the aftermath of the COVID-19 pandemic, which caused supply chain disruptions, reduced timber harvesting, and simultaneously boosted demand for fuel chips as an affordable energy source. In 2022, despite an additional demand surge following the war in Ukraine, the market volume contracted to 1.37 million t due to supply constraints, accompanied by a more than twofold increase in prices. State-owned company Lesy ČR intensified timber harvesting, while new regulations such as mandatory boiler inspections and tightened quality standards for wood pellets and chips began shaping the market environment.

Demand for fuel chips started to soften in 2023, leading to price stabilization and the exit of some smaller sellers, while larger players maintained their market positions. The market volume remained nearly unchanged at 1.38 million t. In 2024, consumption recovered to 1.55 million t, even as factors pointed to continued demand moderation, suggesting an adjustment in supply.

Production coniferous fuel wood in chips and particles in Czechia

In value, 2018-2021, K $ US

After two years of decline, Czechia's production of coniferous fuel wood in chips and particles rebounded. In 2021, output reached 84 010 thousand US dollars, marking a significant 33.3% increase from 2020. The lowest value was recorded in 2020 at 63 001 thousand US dollars, following the largest decline of 16.7% in 2019.

Annual dynamics of production in Czechia in value, 2018-2021, K $ US

In kind, 2018-2021, K t

Coniferous fuel wood in chips and particles production in Czechia grew for the second year in a row. In 2021, output totaled 2 177 thousand tonnes, showing a sharp 58.2% year-over-year rise. From 2018 to 2021, production increased by 65.9%, equivalent to an annualized growth rate of 18.4%. The lowest volume was in 2019 at 1 306 thousand tonnes, which saw a slight decline of 0.5%.

Annual dynamics of production in Czechia in kind, 2018-2021, K t

Exports coniferous fuel wood in chips and particles from Czechia

Exports in kind, K t

Exports of coniferous fuel wood in chips and particles from Czechia fell for the third consecutive year. In 2021, shipments abroad amounted to 128.8 thousand tonnes, a substantial 24.9% drop compared to the previous year. Over the 2018-2021 period, exports decreased by 43.6%, with a compound annual growth rate of -17.4%.

Annual dynamics of product's exports from Czechia in kind, 2018-2021, K t

From 2018 to 2021, Germany, Austria, and Slovakia were the top buyers of coniferous fuel wood in chips and particles from Czechia, accounting for 40.7%, 33.2%, and 13.5% of exports in kind, respectively. Together, they represented 87.5% of total exports.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Czechia in kind, 2018-2021

Exports in value, K $ US

Exports of coniferous fuel wood in chips and particles from Czechia declined for the third year in a row. In 2021, export value stood at 6 933 thousand US dollars, down 10.7% from the previous year. Between 2018 and 2021, exports fell by 54.4%, with a compound annual growth rate of -23.0%.

Annual dynamics of product's exports from Czechia in value, 2018-2021, K $ US

During 2018-2021, Germany, Austria, and Slovakia dominated Czechia's exports in value terms, collectively capturing 89.0% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Czechia in value, 2018-2021

Imports coniferous fuel wood in chips and particles to Czechia

Imports in kind, K t

Imports of coniferous fuel wood in chips and particles into Czechia dropped for the third straight year. In 2021, imports totaled 44.6 thousand tonnes, a sharp 30.1% decrease from 2020. From 2018 to 2021, imports plummeted by 76.3%, equating to an annualized decline of 38.1%.

Annual dynamics of product's imports to Czechia in kind, 2018-2021, K t

Between 2018 and 2021, Poland, Germany, and Slovakia led as suppliers of coniferous fuel wood in chips and particles to Czechia, with shares of 52.1%, 26.9%, and 14.9% of imports in kind, respectively. Combined, they made up 93.9% of total imports.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Czechia in kind, 2018-2021

Imports in value, K $ US

The market exhibited volatility during the observed period. Imports peaked in 2019 at 11 866 thousand US dollars, then fell to a low of 3 260 thousand US dollars in 2021, representing a 3.6-fold difference. In 2021, imports saw a slight decrease of 2.3% from the previous year. The largest decline occurred in 2020 at 71.9%, while the largest increase was in 2019 at 3.3%.

Annual dynamics of product's imports to Czechia in value, 2018-2021, K $ US

From 2018 to 2021, Poland, Germany, and Slovakia were the key players in Czechia's imports by value, accounting for 53.8%, 25.0%, and 12.5% of imports, respectively. Together, they comprised 91.3% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Czechia in value, 2018-2021