Why are pellets prices not dropping?

Market forces at work. People are still buying the pellets. The TSC near me is moving pellets like crazy at $259/ton.

Never seen them drop, they only go up every year.

Pass the Pellets said:

Never seen them drop, they only go up every year.

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Then they will go out of business within a couple of years.

Because a lot of people have stoves and are buying pellets? It is only mid-season so they have lots of time to sell yet.

I would expect the market might adjust next year if it does at all. Folks are committed to burn this winter and most will stick it out until Spring. Next year, if the alternate energy options remain lower priced, I would guess the wholesalers will have to make an adjustment or suffer the consequences as users change to another heating resource. I assume that energy costs are also dropping in Europe so that might reduce export demand for pellets from the US as well.

Good sized chunk of Europe is stuck with Russia supplying NG and Russia has been playing games trying to get control of a major grain grower.

What I can't understand is why motor oil and transmission fluid is still so expensive

Because it takes so long to get old stock out of the system.

Motor oil I can agree. It's needs to come down some.

Transmission fluid however is synthetic, so not as affected by oil prices.

Johnny_Fiv3 said:

Motor oil I can agree. It's needs to come down some.

Transmission fluid however is synthetic, so not as affected by oil prices.

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A blanket statement not actually correct. I know lots of people who use Dexron-Mercon (myself included) which is petroleum based.

It is??!!

Well damn.

Pellet-King said:

Price of oil and ng all time lows why are pellets still wayyyy overpriced?, the bubble has to burst soon, by spring they will be stuck with 1000's of tons as I wont be buying pellets until there $150 a ton

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I wouldn't hold my breath. You might die from lack of oxygen.

SidecarFlip said:

A blanket statement not actually correct. I know lots of people who use Dexron-Mercon (myself included) which is petroleum based.

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Just bought 3 gallons of that myself today....Belive it or not the synthetic was about the same price...

I thought i watched a program one time that was showing the synthetic oil and was suprised that it starts with the same oil as petroleum.

On thread, I think pellets are a pretty good price nationally, some higher, some lower but factoring inflation and the dillution of the dollar, they still seem like a bargain to me.

$198/ton for douglas fir pellets here, the price hasn't changed in the three years I've been burning pellets.

Dave

I have been told that the price of pellets will be going up and not down. The reason for this is because they use a lot of electricity to make the pellets. With the price of electricity going through the roof that doesn't help.

DneprDave said:

$198/ton for douglas fir pellets here, the price hasn't changed in the three years I've been burning pellets.

Dave

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I am so jealous. $360 a ton here.

deercamp said:

I am so jealous. $360 a ton here.

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Everything cost more east of the Delaware Water Gap........

deercamp said:

I am so jealous. $360 a ton here.

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Where is that price? Just pre orderd some green golds for 305 a ton

Chrisnow86 said:

Where is that price? Just pre orderd some green golds for 305 a ton

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Tacoma Wa,

DneprDave said:

Tacoma Wa,

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I was asking the guy in SE mass lol.. I live in SE mass too and was wondering where he was seeing that I just turned down a ton of pellets for 366 a ton

This is a two part question. The first part of this question is "Why." "Why" is a question that has been asked of wiser men than I for millennia and there is no real answer so I shall not attempt to answer it.

The second part of the question is "Are pellet prices not dropping?" The answer to that question is, "Yes."

Pellet-King said:

Price of oil and ng all time lows why are pellets still wayyyy overpriced?, the bubble has to burst soon, by spring they will be stuck with 1000's of tons as I wont be buying pellets until there $150 a ton

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You might as well sell your stoves then.

When all you decide to sell your Hamans and Quads cheap, let me know and I'll come up with a tractor trailer and load 'em up and bring them back here for corn burners.....