how can they blame housing market for shortage

I have 5 tons of softwood in the basement. Lots of manufacturers use a blend. I don't think anyone is blaming housing alone in the pellet crisis.
Unusually high demand is probably right there as the #2 contributing factor to the shortage.

I was told yesterday by a wood guy that he is really backed up on orders because no one is building houses and clearing land - so no wood.

Hardwood flooring?
Cabinet makers still buy their wood ripped and planed thats where most of the hardwood chips and sawdust comes from...... Those mills are slow too..even the ones down here :shut:

flooring, cabinets, trim, furniture, all are typically hardwood and go in new homes, remodels.
The price of diesel is another factor making it harder for loggers to break even to when they do head into the woods.
While many operations do selectivly cut the lots they log, I don't think they go in to a lot and cut just pine from framing lumber, if there is hard wood that would come out while they are in the area as well.

I think you will find that the "shortage" has more to do with the demand curve this season than anything else. If heating oil goes back below $3 before the pellet plants get this winters supply out than you will see many cancelled orders and mills swimming in pellets. That has no seemed like a likely scene so far this year but my oil Co was down to $3.38 last friday.
The pellet industry needs to sort out their distribution model as well. Most years mills are begging for preorders to keep things moving thru summer without too much inventory piling up. This year EVERYONE tried to order in spring and the Mills complained consumers were being irrational. The truth is that if I could lock in a price in spring and take delivery or pick up through out the season everyones problems would be solved. Instead when I go in and order 6 tons to get a decent price in spring they treat it like I am actually in need of immediate delivery. So they next guy waits in line behind my 6th ton, which will not be burned until March 2009 before he can get his 1st bag to burn in Oct. It's silly really. Mills and dealer need to figure out a system if pellets are to be considered a serious alternative to oil.

mascoma said:

The pellet industry needs to sort out their distribution model as well. Most years mills are begging for preorders to keep things moving thru summer without too much inventory piling up. This year EVERYONE tried to order in spring and the Mills complained consumers were being irrational. The truth is that if I could lock in a price in spring and take delivery or pick up through out the season everyones problems would be solved. Instead when I go in and order 6 tons to get a decent price in spring they treat it like I am actually in need of immediate delivery. So they next guy waits in line behind my 6th ton, which will not be burned until March 2009 before he can get his 1st bag to burn in Oct. It's silly really. Mills and dealer need to figure out a system if pellets are to be considered a serious alternative to oil.

Click to expand...

I agree wholeheartedly. NEWP is making lots of noise about how we should all settle down and just plan on getting multiple deliveries over the winter to better match the production side of the house. I would if I was guaranteed they weren't selling my production to someone else (you know, have capacity for 100 tons but sell 150) and kept the price stable through the season. Since they don't it's prudent to buy what I need early and keep it in my garage - then no matter what happens to price or supply, I'm covered for the winter. One of the guys I work with buys his coal up front but they store it - he picks it up 20 bags or so at a time every couple of weeks. Same thing would be nice with pellets too. If I wanted the instability I'd go back to heating with oil

I have 4 tons of new england softwood pellets. www.woodheat.com

In my situation, if I don't have my pellets in the cellar before snow flies, I'm S.O.L., access is nearly impossible after that. Don't feel like horseing them over the snowbank and down the hill over the ice.