Pellet prices still reasonable in most areas - supply also...

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webbie

Seasoned Moderator
Nov 17, 2005
12,165
Western Mass.
Did some checking around and there seems to be plenty of pellets in many areas - for instance, Pennsylvania and the Midwest - have not heard of shortages out west either, although it would nice to get a report from the folks out there! Prices are in the $190-220 range picked up, which is very reasonable.

Since the West is not reliant on oil, and the weather is generally mild, we may not see problems there....hopefully.

The highest prices seem to be in Maine or certain other areas of New England and upstate NY. This may be based on the fact that the supply from the big guys (NE Pellet, etc.) is largely called for, so others have raised their prices....sensing a low supply.

The supply is good in most areas - keep in mind that the Home Depots and Hardware chains have probably spoken for a lot of supply also, but not yet taken delivery.

Relatively good news, although it does not help those folks living in the areas where things are tighter.
 
I agree that things are not all that bad. I live in northern New England, and prices are between $230 and $260 per ton. Not a great bargain, but really not that bad considering the demand.

The box stores are either sold out (Lowes) or it's first come first served (Home Depot).

I've found that while some places are out, there are pellets to be had. I bought 5 tons from Aubuchon Hardware. Four are in my garage. The last ton will be here on Thursday. I paid about $20 more per ton than the box stores are charging (even with my local store giving me a discount), but it was worth the piece of mind to me.

I actually have a theory that pellets won't be hard to find during the middle of winter. I think that most people are stocking up now, and there won't be as high a demand during the winter because of it.

All in all, I've got no complaints. Things seem to be working okay, and there are more plants coming online in the near future. If the price of oil goes down (which I think it will in the next year - but what the heck do I know), then things will just be looking that much better.
 
There might have been somewhat of a scare earlier mid - late spring during the transition supply period from old stock to new?
New pellet stocks presently seem to be pouring into my area now.
John
 
Sure is good to hear some positive, finally. $210 for 1.2 tons pallet here(pickup price).
 
Stoves are in decent supply also - again, there are "spot" shortages, specifically of Harman stoves....but there are supplies of many other decent brands out there, and many more on the assembly line.

I would tend to agree that prices will follow supply - but there are too many variable in pellet use (weather, price of oil, etc.) so mid-season prices are - at best - guesswork. Still, we can hope for the best possible solution for everyone - that is lower oil prices AND the resulting lower pellet prices!
 
Here's an interesting statement from NEWP's president (from NEWP web site).

http://www.pelletheat.com/core/newsItem/?news_id=14

Reading between the lines, I think he's admitting that pellet supplies were caught off guard by the masses wanting to secure their winter supply early and they sold off their inventory earlier than normal. As production continues through the summer, fall and into the winter inventories will begin to replenish.


I worry that in the long run this may mean fewer or less deeply discounted "early bird" specials next spring. This would help keep the "sales curve" a little flatter and generate a more continuous flow of cash through out the year (from the dealer/producer's perspective).
 
some good news is always great.i have 6 tons to be delivered in august.
 
The only good prices I have found near me (Eastern PA, central (Easton), are pickup only. The delivery charges, even for a few miles, they are raping people on. I picked up 250 per ton with delivery. Best price I found was 219 but picking up would be of been 60$ in gas for my truck, so my time was worth the extra on the other delivery. The rest of the people in my area were asking 250 a ton + delivery or pickup.

No one was short, but any good deals, were over fast, since most people ordered fast. I got the second wave of early orders, would of saved 14 a ton other wise.
 
That article tells me that they don't want the comsumer and future consumer who is questioning the availability of pellets to bail and buy into some other heat source. Sounds like they might have some different types of feed stock for pellets or possibly a recycled wood pellet on the drawing board. Good for them to keep moving forward.
 
A colleague of mine in central New Hampshire told me this morning that he got a quote of $265 per ton, not including delivery.

I'm not sure if that goes up or down in the fall. I guess it depends somewhat on what pellet production and oil prices do this summer. I'd hate to stock up on $265 pellets, only to have the price correct back down to $200 or $210 once the heating season begins. Worse, I guess, would be to wait until fall and see them top $300. Maybe it would be best to follow a prudent investment strategy: buy half your pellets now and half in October. Hedge your bets.
 
Yeah... I think New England is now in the $250-$260 range.
 
kilarney said:
Yeah... I think New England is now in the $250-$260 range.


I'm getting them for 260.the dealer promised top Quality.i will find out what brand tomorrow.
 
Picked up a couple ton of FBP ProPellets for 200 a ton here in Central Indiana this week. Old stock and last winters price at Rural King.
 
I bought the pellet puppy at the year end fire sale and burned two bags through it to see if it worked. Parked it over in the corner and will keep slaughtering trees until I see how this pellet supply thing works out.

Heck if this mad dash for pellet stoves keeps up I may sell it. I still have the box and the pallet.

I want one of Corie's new bay window beauties anyway.
 
Eric Johnson said:
A colleague of mine in central New Hampshire told me this morning that he got a quote of $265 per ton, not including delivery.I'm not sure if that goes up or down in the fall. I guess it depends somewhat on what pellet production and oil prices do this summer. I'd hate to stock up on $265 pellets, only to have the price correct back down to $200 or $210 once the heating season begins. Worse, I guess, would be to wait until fall and see them top $300. Maybe it would be best to follow a prudent investment strategy: buy half your pellets now and half in October. Hedge your bets.
Prices won't go down in the fall, dealers buy at a set price and charge accordingly to make a teeny profit.
If anything those prices will go up to help boost the profit margin when the demand peaks in the fall.
although that set price per ton varies on shipping costs and other variables but I'm thinking this fall $300 a ton would be considered reasonable maybe even a deal, at least in New England :down:
 
GVA said:
Eric Johnson said:
fall.
although that set price per ton varies on shipping costs and other variables but I'm thinking this fall $300 a ton would be considered reasonable maybe even a deal, at least in New England :down:


My shipping will be 180 for 6 tons.it's my dealer and the first year sold me pellets that burned very hot with very little ash.the deal i got the second year from the big box store was not as good. low heat with allot of ash.i guess you get what you pay for including pellets.
 
The 'beauty of Long Island' is that you can always depend on paying higher prices than anywhere else! $295 per ton and $80 delivery charge only guaranteed if deposit by 6/30 for 'country boy pellets'. Anyone have experience with these pellets?
 
Ha, but on Long Island and even in Jersey you can always depend on MAKING more money than anywhere else too! As the old texts say "to each according to his need, from each according to his ability ($$$)".......

Must be those high tolls coming in. If the market gets big enough, we could float some in on the ferries in the summertime from CT.

Never heard of Country Boy, but so many brands are relabeled and private labeled these days.........
 
Webmaster said:
Ha, but on Long Island and even in Jersey you can always depend on MAKING more money than anywhere else too! As the old texts say "to each according to his need, from each according to his ability ($$$)".......

Nothing to do with Karl Marx. If it crosses the Verrazano Bridge you have to figure in the gumba tax. It ain't called the guinea gangplank for nothing.
 
the pellets I purchased were $265 / ton delivered.
bought 3 tons.

I wish I could of gotten them cheaper, but I wanted to wait until I secured installation of a stove before pre-buying pellets.

I do have a gut feeling that they might slide down a bit, but with fuel/diesel prices were they are I doubt they will fall that much, and I don't plan on bringing home something like .5 ton from a Home Depot in a Wagon... lol
 
My gut feeling is that winter prices in the northeast will settle in at the $280/ ton range. But that's just a guess.

On another note, it looks like the pelletsales.com loophole is now closed. Pellets2u.com has been asked to suspend their link to pelletsales.com.
 
Our prices will remain consistent for the next heating season at least. We spoke for a not insignificant chunk of production, but that really shouldn't affect today's prices because we don't have any pellets yet.

Prices: 1-3T, $260, 3-8T, $250, 8-16T, $235. This is assuming you live within 25 miles of a node, and we might charge you extra for fuel if you're outside the free delivery area.
 
Hey ssman --

Where did you get pellets for $215/ton?
What brand? Is that delivered or pick up?

thanks.
 
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