Ence announces the reduction of its offer price in wood’s sells in the north of Spain
- The electric reform from the Spanish Government do not recognized the energetic value of wood, reducing drastically and retroactively the retribution to energy cogeneration with wood.
- Despite that the pulp price in international market has been reduced more tan 7.5% since June 2013, the wood’s price has experimented an increase of 5% in the north of the country.
11 April 2014.- Ence – Energía y Celulosa has announced to owners and forest suppliers in the north of Spain a reduction of 3, 5 euros/tons in the offer price to buy wood from eucalyptus, as consequence of the combined effect of the electric reform and the decrease of pulp prices in the international market.
In this way, the new electric regulation do not recognized the energetic value of wood – that before the reform achieve more than 30% from its value – after establishing a strong reduction of the retribution to energy cogeneration with wood (with retroactive effects since July 2013).
In addition to this impact, the growth in wood eucalyptus price has experimented an increase of 5% in the peninsular north since June 2013, at the same time that in the international market pulp prices of eucalyptus has suffered a decrease up to 7.5%, from 820 dollars/tons -that was achieved last march- to 758 dollars/tons.
As consequence of these two circumstances, the company is not capable of sustaining the level of the wood eucalyptus prices of purchase that has being offering to its suppliers until nowadays. That level of prices will not allow the company to maintain the competitiveness of its pulp of cellulose in the international market, of which is destined big part from its production.
The company trusts that due to the work between wood producers to obtain more efficiency in forestry and application labors, the north of Spain continues improving its competitiveness in forest production.