New England (MA, CT, ME, NH, VT, RI) Eastern Massachusetts

[sgordon]

They would go out of business or be acquired for 10 cents on the dollar. Until the paper mills lower their gate price fiber isn't going down and now you have very large mills (Enviva and others) being built for cofiring across the pond that's stressing the suppliers.

 

[Peterfield]

Then that's what will happen. There's no reason to pre-buy so I'll probably pick some up in late Sept or October and if I run out, oil will do the trick.

 

[Pete Zahria]

I agree with the wood cost part of it but if there is any appreciable move
back to oil and propane, what difference does the cost mean if no one is buying.

My comment was about the prices dropping like a brick.
It just wouldn't happen.
The fixed costs associated with the business won't change that much.
There is very little wiggle room in the pellet business.
There are way to many steps in between the forest, and your basement.
None of those steps are overflowing with profits.
Fair profits. Of course. That is why anyone is in business.
But not like selling a phone for $600....

 

[Augmister]

If people stop buying pellets, pellet manufactures go out of business and your Harmans and Quads will make great planters.

 

[RhodyPelletRook]

If people stop buying pellets, pellet manufactures go out of business and your Harmans and Quads will make great planters.

Fair point Aug. Some additional things that may or may not transpire...

With the lower price of oil pressuring pellets prices--- what I think will happen is that the people that don't plan in advance, which I think is a large group, will be the beneficiaries of lower pellet pricing through the 2015-2016 winter, which will push all producers lower in pricing to clear inventory to the consumer, which in the end is good for the whole pellet buying community. The interesting point will be if oil remains lower over the next 24 months-- pressure will remain on pellet producers and you will see the best pellet companies remain productive, albeit at lower prices, and lower quality pellet producers will be weeded out through closures, bankruptcy (think restructures and asset sales etc), mergers and acquisitions. In the end, the consumer will hopefully win-- cross your fingers!

 

[AccentraRRT]

I own Easy Blaze call me at 804-402-6095 for pricing options.

Just wondering what you have to offer and at what price, could possibly be interested in ordering. If email works better let me know.

 

[sgordon]

Please check out our website we are adding retailers weekly.

www.easypelletproducts.com