Serbian pellet demand triples domestic production as prices hit record highs

Serbia is facing a severe shortage of wood pellets ahead of the heating season. By late August, prices had reached €350/t — the highest level since commercial pellet production began in the country. By comparison, pellets cost around €230/t in June 2025, meaning prices have surged by approximately 52% over the past year.

The main driver behind the price surge is a severe imbalance between supply and demand. Serbian producers are operating at full capacity, but according to Branko Glavonjić, a professor at the University of Belgrade’s Faculty of Forestry, current demand is around three times higher than domestic production.

Retail pellet prices currently range from €320 to €400/t, depending on the region and supplier. The highest prices are reported in Belgrade and Novi Sad at around €355–372/t, while consumers in Niš and Kragujevac can buy pellets for approximately €310–355/t.

The shortage has been further aggravated by early purchases. Following supply disruptions during the previous heating season, consumers began building stocks as early as July and August rather than waiting until autumn. The scale of the shortage has already prompted discussions about possible government intervention, although no specific measures have yet been announced.

Firewood remains a cheaper alternative to pellets, although its prices have also increased since August. Further developments in the pellet market will depend on how quickly producers can clear order backlogs and increase supply. The typical difference between summer and winter pellet prices is €30–40/t, so record prices even before the heating season raise the risk of further increases.

Tags: feed pellet, pellet, prices, Serbia