Wood shares soared 700 percent in the stock market as natural gas declined

As people in France turned to sawdust due to the rise in energy prices, the shares of companies selling wood rose rapidly in the stock market. Shares of wood companies rose 700 percent on the stock exchange.

According to the French channel BFM TV, the rising prices of gas and electricity before the approaching winter have led citizens to turn to alternative fuels. As electricity and natural gas prices in France soared due to the Ukraine-Russia war and Russia's restriction of natural gas flow to Europe, people turned to wood shavings for heating on the grounds that it is less costly.

Oil and coal boilers banned!

In addition, the government's promotion of green fuel and the ban on the installation of oil and coal boilers over the past two years has been another factor driving demand for wood. According to Propellet, the National Association for Sawdust Heating, saw sawdust stove sales increased by 41 percent and sawdust boiler sales by 120 percent between 2020 and 2021.

Sawdust prices increased by 400 euros per ton!

With the increase in demand, sawdust prices also increased between 300-400 euros per ton. The share values of some France-based companies known for the sale of wood and sawdust increased by up to 700 percent on the stock exchange. The French Federation of Combustibles, Fuels and Heating recently announced that there is a high demand for wood chips as fuel in the country. While there is a huge supply deficit in wood due to high demand, the fear of energy shortages has led consumers to stock up on wood before winter. On the other hand, the French press reported that due to the Russian gas interruption and energy shortages, the benchmark electricity price on an hour/megawatt basis would break a historical record by reaching 1075 euros as of 2023. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!