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how can they blame housing market for shortage

Post in 'The Pellet Mill - Pellet and Multifuel Stoves' started by dave1966, Sep 15, 2008.

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  1. dave1966

    dave1966 Member

    Joined:
    Aug 24, 2008
    Messages:
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    Loc:
    south jersey
    i could be wrong but seems to me most houses are built from pine studs (not a hardwood)and most us are burning hardwood pellets unless there are areas that use oak and other hardwoods for framing out a houses. and has there been that much waste from the cabinet makers to supply us with pellets for all those years.i just dont understan how the can just blame it on the housing market .sound like the politicians might be buying stock in the pellet mills

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  2. mkmh

    mkmh New Member

    Joined:
    Jul 15, 2007
    Messages:
    407
    Loc:
    Southern, Maine
    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.
  3. markpee

    markpee New Member

    Joined:
    Aug 12, 2008
    Messages:
    151
    Loc:
    Huson Valley New York
    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.
  4. dave1966

    dave1966 Member

    Joined:
    Aug 24, 2008
    Messages:
    68
    Loc:
    south jersey
    thats what i thought to was demand thats why i bought pellets early ,but all clips and articles the first thing they seem to put the blame on is the housing market wich made no sence to me
  5. GVA

    GVA Minister of Fire

    Joined:
    Sep 4, 2006
    Messages:
    2,140
    Loc:
    Waxhaw, NC... Formerly North shore Mass
    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:
  6. mascoma

    mascoma Feeling the Heat

    Joined:
    Jul 23, 2008
    Messages:
    326
    Loc:
    Upper Valley NH
    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.
  7. DiggerJim

    DiggerJim Feeling the Heat

    Joined:
    Jul 29, 2008
    Messages:
    497
    Loc:
    Northcentral Connecticut
    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 :)
  8. kketterer

    kketterer New Member

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    Sep 14, 2008
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    Loc:
    Central MA
  9. hossthehermit

    hossthehermit Minister of Fire

    Joined:
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    Loc:
    Maine, ayuh, by gorry
    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.
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