Pellet prices: How low will they go?

Would hate to see a failure to this industry because it is not supported. Time to take action and educate your neighbors in the benefits of pellet burning that go beyond cost. No, I don't think there is a need for a "Pellet Party", but there is a need to get a stable pellet burning industry. Pellet use is carbon neutral. Pellet burning can reduce the strangle hold that of some not so friendly nations, and some Wall St. futures traders have on us. Yes, I want lower prices for heating my home. Most anything that allows me to keep my home is a good, but I also don't want to see a collapse of the pellet industry due to lack of interest, laziness, or ignorance.

I'm holding out for O'kies at $150 ;-)

lordgrinz said:

I'm holding out for O'kies at $150 ;-)

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I don't think you'd see that unless you were a distributor! ;-)

At the prices I've seen quoted recently pellet mills aren't making much of a profit.
Mills are struggling. A guy I know down the road delivers semi loads of sawdust to mills daily and is owed ALOT of $ from different mills.
HHO is on the rise lately.
NG is cheap and I don't think is going to fluctuate much.
Read an article in biomass magazine recently about how within 5-10 year most large volume biomass materials will be traded (futures) as a commodity.
IMHO the price is close to a bottom and has nowhere to go but up.

BTU said:

lordgrinz said:

I'm holding out for O'kies at $150 ;-)

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Don't hold your breath on that ....... :smirk:

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Whats one less Rolls Royce in the driveway, BTU? ;-)

BTU said:

lordgrinz said:

BTU said:

lordgrinz said:

I'm holding out for O'kies at $150 ;-)

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Don't hold your breath on that ....... :smirk:

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Whats one less Rolls Royce in the driveway, BTU? ;-)

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What the hell are you smoking?.......Put down the eggnog...you are going delusional......

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I'm thinking BTU is a beamer driver? Where he spends the money is them wild pool parties entertaining them skimpy dressed ladies!

Lucky dog! :cheese:

BTU said:

lordgrinz said:

I'm holding out for O'kies at $150 ;-)

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Don't hold your breath on that ....... :smirk:

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Somebody MUST be inhailing pellet smoke..........

Augustine said:

Somebody MUST be inhailing pellet smoke..........

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I guess we know who bought all the hemp pellets! %-P

Maine is so rural, that NG is only for the really urban areas, which is only a very few places. Oil is the standard for most, and the rest of us, wood or pellets. Would be nice to see some of those plans for pellet furnaces and bulk delivery to home owners. While they are out there, so far, they are out priced for most consumers. But, like it or not, Oil is going up and up. That for certain is the most powerful drive to get alternative fuels. Article in the local paper recently about using abandoned farmlands in the county for harvesting grass for pellet production for commercial furnaces. I've been told that Europeans are not dependent on oil for heat, and that pellet use is much more common. Yes, pellet prices are down for now, but my many years have taught me that if it is a bargain, it will be temporary. Stock up what you can. Always have an alternative plan.

I actually though we saw the low this spring time. But the stacks are still kind of high and the prices keep going lower. If were not at the bottom? We have to be close. Other fuels are starting to rise and pellet can't be far behind.

Just hoping they stay were there at til spring so I can restock at this seasons prices.

j-takeman said:

I actually though we saw the low this spring time. But the stacks are still kind of high and the prices keep going lower. If were not at the bottom? We have to be close. Other fuels are starting to rise and pellet can't be far behind.

Just hoping they stay were there at til spring so I can restock at this seasons prices.

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So a price of $249 for super premium(Okies, etc.) is considered a low? I was hoping for closer to $200 a ton.

lordgrinz said:

j-takeman said:

I actually though we saw the low this spring time. But the stacks are still kind of high and the prices keep going lower. If were not at the bottom? We have to be close. Other fuels are starting to rise and pellet can't be far behind.

Just hoping they stay were there at til spring so I can restock at this seasons prices.

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So a price of $249 for super premium(Okies, etc.) is considered a low? I was hoping for closer to $200 a ton.

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$200 a ton for Okies? I don't think we'll see them that low. With trucking fees and the mark up of the dealers added. Mill direct maybe?

Just called our local TSC and HD, TSC had them for $223/ton. I asked what brand but the person I talked to didn't know, he did mention they were 100% wood pellets though-not sure what else they would be! Late in the summer and early fall they were Instant heat so I assume that's likely what they are now. Callded HD and they are $187/ton for Freedom Fuel. I guess if I got desperate I would grab those but I can get Vermont Wood pellets for $236 so...

I don't know if we will see prices much lower. The problem that I think is HUGE and is the main reason so many stoves are for sale is....dealers!

When we bought our stove it was sold as a "set it and forget it" stove that needs to be scraped once a week and cleaned after every ton. The cleaning consisted of scraping the burn pot and the air exchangers on the top and maybe emptying the ash pan.

Now it didn't take us long to realize that wasn't the case and had we not been COMMITTED to reducing our oil dependency we may have had a stove in the classified section as well. I feel a little misled but after 3 years of hardly running the furnace, I don't mind that so much. I just wish the dealer had been more upfront with us, we still would have bought. I guess many people may not have though!

turbotech said:

I have talked to a lot of people and what you say about the most dealers seems to fit. The owner just didn't expect it to be that much work.

Personally, I don't see how the prices could get much lower. I was curious about what others thought. I look at it this way -> Cord wood is 200-250 cut and split around here and supposedly seasoned (whatever that may be). A ton of pallets is as low as $168 and way less work for the end user. Everyone manufacturing the product is taking a beating at that price compared to cord wood.

Ask HD if they also sell Fireside Ultra. Some I called said just Freedom Fuel and didn't even know they had both for sale.

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Growing up I helped both my dad and grandfather cut logs, split and stack wood. I swore that when I got my own place I would never cut, split and stack again. I agree that Pellets are far easier. They are however much more work than say fuel oil or propane which are the 2 most common sources of heat where I am in Vermont.

As for HD and their prices on Freedom fuel, that's about what they are worth per ton. I guess they burn ok but the ones I tried last year STUNK, bad! If they had other options at that price it might be worth looking into.

I guess what it comes down to for most is savings over oil Vs. the amount of work you are willing to put into it. Myself, I don't mind a little extra work to save $400-$500 over oil. Even if I was breaking even I still would be happy not to have to worry about the price of oil.

Beamer? I saw him driving a MAYBACH last week. It was on the Forbes top 100 richest people in the USA

j-takeman said:

BTU said:

lordgrinz said:

BTU said:

lordgrinz said:

I'm holding out for O'kies at $150 ;-)

Click to expand...

Don't hold your breath on that ....... :smirk:

Click to expand...

Whats one less Rolls Royce in the driveway, BTU? ;-)

Click to expand...

What the hell are you smoking?.......Put down the eggnog...you are going delusional......

Click to expand...

I'm thinking BTU is a beamer driver? Where he spends the money is them wild pool parties entertaining them skimpy dressed ladies!

Lucky dog! :cheese:

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I'm new to the pellet world but sure am enjoying these low prices. Hopefully they last. At $185 a ton for Lignetics by me I am stocking up!

I hear you Jim. Coming from a childhood of helping dad cut, load the truck, unload the truck and stack on the fencerow, split, restack, load the truck again, unload the truck onto the porch and then feed the fire several times a day, making the choice to go with pellets was pretty easy!

Hello

Just like Ludacris - How Low Can You Go??? How Low Can You Go???

My neighbor bought 14 bags on sale for $3.74 each at the new Lowes in Salem NH and used his $10 off coupon for $50 purchase and wound up paying $3.02 per 40lb bag

Since 1 - 40lb bag = 2.5 gals of oil = 3.75 gallons of propane

Wood Pellets Rule!!

Pellet_Dog said:

I'm new to the pellet world but sure am enjoying these low prices. Hopefully they last. At $185 a ton for Lignetics by me I am stocking up!

I hear you Jim. Coming from a childhood of helping dad cut, load the truck, unload the truck and stack on the fencerow, split, restack, load the truck again, unload the truck onto the porch and then feed the fire several times a day, making the choice to go with pellets was pretty easy!

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Oh man, it would start as soon as winter was over. My grandfathers house was an old victorian style home with NO central heat. His heat was the woodstove on the main floor. First he would get a load of logs. I was to young for them to let me use the Chain saw but there was no problem lugging the wood from the pile to the basement, then to the porch then loading the truck so my dad could bring it back to our house. Then unload the truck, stack in the basement at my parents house and when the basement was full-make another stack on their porch!

Nope, I don't miss those days! These days I can have the pellets delivered if I choose and have them put them in my garage where I can bring them in as needed!

Oil Heads Toward $100: Good For Investors, Not Consumers


The rise in oil prices could be just getting started, posing opportunities for investors—as well as challenges for consumers and hopes for US economic growth.

Consensus estimates are for oil prices to rise to the $100-a- barrel range for 2010, a base case that would reflect a steady pace of economic growth. In an optimistic scenario, gains of that nature merely would reflect growth in the US economy and would not pose an obstacle to what is expected to be a more sustained pace of recovery.

But anything beyond that, such as the estimate from Bank of America Merrill Lynch on Monday for $120 a barrel in 2011, could spell danger.

http://www.cnbc.com/id/40752176

BOA/ML is likely to be in the ball park. It will be above $100, once it gets around $110 look for dip number 2 (maybe even the third, the bookkeepers are still cooking the books on that) in the economy.

Even as the costs seem to even out somewhat I find that 68 degrees with the pellets are a lot warmer than 68 degrees with propane. Sounds weird, but whenever we run our propane furnace we have to run it at 75 degrees to get the same level of comfort

caledoniacars said:

Even as the costs seem to even out somewhat I find that 68 degrees with the pellets are a lot warmer than 68 degrees with propane. Sounds weird, but whenever we run our propane furnace we have to run it at 75 degrees to get the same level of comfort

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I am in a similar situation. I heat mostly with a Quadrafire 3100 woodstove, but I also have a propane furnace. I work it out so the propance guy comes once in the middle of summer. I get a discount for buying the propane at that time, and then I use the furnace minimally. works out well. I also find the stove is "warmer" at a given temperature.

Green with envy at you guys sub $200. Best I can do here in the ATL is 264/ ton at Tractor Supply(Greenways). I called the guy at RockWood in The Rock Ga, He sells his "super premiums" at his Thomaston retail store for $270/ton.
Oh well it still beats electricity.