Are High Biomass Costs the New Reality

The recent surge in biomass prices has raised concerns among California extractors who are struggling to find clean biomass for their operations. This increase in prices has led to debates about whether it is a new reality or simply a bubble that will eventually burst.

Our research suggests that while the current price surge may be causing some difficulties for extractors, it is likely to be a short-term trend. Despite the challenges faced by California extractors, there is ample inventory available that has not yet reached the market.

It is important to note that the situation in California may not be indicative of the overall biomass market.

Other states, such as New York and Oklahoma, have reported surplus biomass, indicating that the supply-demand dynamics can vary regionally, but can still impact demand in California.

As with any market fluctuation, it is crucial to closely monitor developments and gather comprehensive data before drawing definitive conclusions about whether high biomass prices are here to stay or if they will eventually stabilize.