Coniferous wood fuel market in Romania

Earlier Report Observations

The Romanian coniferous wood fuel market experienced significant price volatility and supply constraints from 2018, driven by a supply crisis that saw prices surge over 400%. The state-owned forestry company RNP-Romsilva did not supplement the supply of firewood, amplifying market pressure. This period was followed by the implementation of the SUMAL 2.0 wood tracking system in February 2021, which introduced temporary administrative blockages for producers seeking market access, complicating logistics and approvals for forestry operations.

In 2022, the war in Ukraine triggered an explosion in wood and pellet prices, compounded by blocked transport routes and global energy resource pressures. The Romanian government imposed an artificial price cap on firewood to curb speculation, while RNP-Romsilva again failed to increase wood mass volumes on the market, exacerbating the shortage. This contributed to a over 30% drop in wood industry production that year. High prices and low wood mass volumes persisted into 2023, leading to contract cancellations worth 1.8 million m³ and a further 10-20% decline in wood industry output, with SUMAL remaining a source of administrative costs.

By 2024, RNP-Romsilva shifted policy, aiming to place 50% of wood mass on the market in processed form. This change, along with a supply surplus, drove prices down from their 2022-2023 peaks. National policies promoting forest biomass for decarbonization and heating cost reduction continued to influence demand, with companies like HS Timber Productions strengthening their position in the growing pellet segment as an ecological alternative to firewood.

Production coniferous wood fuel in Romania

In kind, 2017-2020, K m³

Top producers of coniferous wood fuel, 2017-2020

World map of production of coniferous wood fuel, 2017-2020

In 2020, Romania produced 1,411 thousand cubic meters of coniferous wood fuel, marking a 45.4% increase compared to 2019. Between 2017 and 2020, production grew by 64.4%, which translates to an average annual growth rate of 18.0%. The most significant decline occurred in 2019, when production fell by 10.6%.

Annual dynamics of production in Romania in kind, 2017-2020, K m³

Exports coniferous wood fuel from Romania

Exports in kind, K m³

After two years of growth, Romania's exports of coniferous wood fuel declined. In 2020, exports totaled 4.5 thousand cubic meters, representing a sharp year-on-year decrease of 61.3%. Between 2017 and 2020, exports decreased by 19.4%, averaging an annual decline of 7.0%. The highest export volume was recorded in 2019 at 11.7 thousand cubic meters, while the largest increase occurred in 2018 with a 68.0% rise.

Annual dynamics of product's exports from Romania in kind, 2017-2020, K m³

From 2017 to 2020, the largest buyers of coniferous wood fuel from Romania were Slovakia, accounting for 34.6% of exports in volume, Hungary with 15.2%, and Germany at 14.5%. Together, these three countries made up 64.4% of Romania's total exports in volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Romania in kind, 2017-2020

Exports in value, K $ US

The market showed an unstable trend during this period. Exports peaked in 2018 and reached their lowest point in 2020, with a 2.8-fold difference between these years. In 2020, Romania's exports of coniferous wood fuel amounted to 1,166 thousand US dollars, reflecting an abrupt drop of 63.0% from the previous year. The maximum value was recorded in 2018 at 3,281 thousand US dollars, which also saw the largest increase of 162.0%.

Annual dynamics of product's exports from Romania in value, 2017-2020, K $ US

Between 2017 and 2020, Slovakia led as the top buyer of coniferous wood fuel from Romania in value terms, accounting for 47.4% of exports. France followed with 12.2%, and Hungary with 11.1%. Collectively, these three markets represented 70.7% of Romania's total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Romania in value, 2017-2020

Imports coniferous wood fuel to Romania

Imports in kind, K m³

Romania's imports of coniferous wood fuel declined for the second consecutive year. In 2020, imports stood at 216.6 thousand cubic meters, indicating a 34.6% drop from 2019. Between 2017 and 2020, imports decreased by 42%, averaging an annual decline of 16.6%. The highest import volume was recorded in 2018 at 458.0 thousand cubic meters, which also experienced the largest increase of 22.6%.

Annual dynamics of product's imports to Romania in kind, 2017-2020, K m³

From 2017 to 2020, Ukraine and Belarus dominated Romania's imports of coniferous wood fuel in volume, while other markets played a less significant role.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Romania in kind, 2017-2020

Imports in value, K $ US

Market performance showed noticeable fluctuations during this period. Imports peaked in 2018 and fell to their lowest in 2020, with a 2.4-fold variation between these years. In 2020, Romania's imports of coniferous wood fuel reached 8,886 thousand US dollars, amounting to an abrupt decrease of 51.5% compared to the previous year. The maximum value was recorded in 2018 at 21,303 thousand US dollars, which also saw the largest increase of 74.2%.

Annual dynamics of product's imports to Romania in value, 2017-2020, K $ US

Throughout 2017 to 2020, the three largest markets for Romania's imports of coniferous wood fuel in value terms were Ukraine, Belarus, and Poland, together accounting for 85.0% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Romania in value, 2017-2020