Coniferous fuel wood in chips and particles market in Hungary

Earlier Report Observations

The market volume for coniferous fuel wood chips in Hungary started at 325 thousand tons in 2018, then declined over the next two years to 269.5 thousand tons in 2020, before recovering to 297.8 thousand tons in 2021. During this early period, the expansion of gas-based cogeneration projects, which received policy support, limited the competitiveness of wood chips as a renewable energy source. Additionally, household preferences for firewood, briquettes, and pellets over chips shaped demand patterns.

In 2022, the market expanded sharply to 370 thousand tons. This growth was primarily driven by a change in utility cost rules implemented that year, which significantly increased demand for heating wood, including wood chips. The state-owned company ERDÉRT-TUZSÉR Zrt. also played a notable role as a major player in coniferous sawmilling and drying capacity, influencing market supply.

The market contracted drastically to 126.5 thousand tons in 2023 after the abolition of the official price for firewood, which led to higher prices and reduced demand. Rising import costs for coniferous wood, particularly Danish spruce, also affected the supply chain. In 2024, volume partially rebounded to 164.1 thousand tons despite continued price increases for firewood, supported by growing demand for wood chips as raw material for briquette production due to advances in feedstock and technology.

Production coniferous fuel wood in chips and particles in Hungary

In value, 2018-2021, K $ US

Hungary's production of coniferous fuel wood in chips and particles has declined for the third consecutive year. In 2021, output was valued at 7 501 thousand US dollars, marking a 13.3% decrease from the previous year. Between 2018 and 2021, production fell by 47.8%, which translates to an average annual decline of 19.5%.

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

In kind, 2018-2021, K t

Hungary's production of coniferous fuel wood in chips and particles has increased for the third consecutive year. In 2021, 269.3 thousand tonnes were produced, showing a modest 10.0% rise compared to 2020. From 2018 to 2021, production grew by 14.6%, averaging an annual increase of 4.6%.

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

Exports coniferous fuel wood in chips and particles from Hungary

Exports in kind, K t

The market displayed volatility during the observed period. Exports reached their lowest point in 2021 at 0.9 thousand tonnes, representing a 9.7% year-on-year reduction, and peaked in 2019 at 15.4 thousand tonnes, with a 17-fold difference between these years. The largest decline occurred in 2020, falling by 93.5%, while the largest increase was in 2019, up by 40.0%.

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

From 2018 to 2021, Romania and Austria were the dominant destinations for Hungary's exports in kind, together accounting for 93.3% of total flows, with other markets making up the remainder.

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

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

Exports in value, K $ US

The market showed an unstable trend over the timeframe. Exports hit their lowest in 2021 at 36 thousand US dollars, reflecting a sharp 50.6% drop from the previous year, and reached their peak in 2019 at 1 033 thousand US dollars, with a 29-fold difference between these years. The largest decline was in 2020, down by 92.9%, while the largest increase was in 2019, up by 21.5%.

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

Between 2018 and 2021, Romania and Austria were the primary buyers of coniferous fuel wood in chips and particles from Hungary in value terms, jointly taking 96.4% of total exports, with other destinations each holding relatively small shares.

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

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

Imports coniferous fuel wood in chips and particles to Hungary

Imports in kind, K t

After a two-year decrease, Hungary's imports of coniferous fuel wood in chips and particles increased in 2021. Imports stood at 29.4 thousand tonnes, equivalent to a 14.8% rise from the prior year. From 2018 to 2021, imports decreased by 70.9%, with an average annual decline of 33.7%. The lowest value was recorded in 2020 at 25.6 thousand tonnes, and the largest decline occurred in 2020, falling by 58.3%.

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

Throughout 2018 to 2021, Poland, Austria, and Slovakia formed the core of Hungary's imports in kind, with shares of 34.4%, 24.2%, and 22.7% respectively, together accounting for 81.3% of total flows.

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

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

Imports in value, K $ US

Following a two-year drop, Hungary's import volume of coniferous fuel wood in chips and particles rose in 2021. Import volume totaled 3 141 thousand US dollars, reflecting a sudden 27.3% increase compared to 2020. Over the period 2018 to 2021, imports decreased by 65.7%, with an average annual decline of 30.0%. The minimum value was in 2020 at 2 468 thousand US dollars, and the largest decline was in 2019, down by 53.5%.

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

From 2018 to 2021, Poland, Austria, and Czechia were the main markets for Hungary's imports in value terms, with shares of 41.0%, 30.5%, and 11.1% respectively, together making up 82.6% of total flows.

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

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