Pellet prices are "not" dropping in NE

  • Active since 1995, Hearth.com is THE place on the internet for free information and advice about wood stoves, pellet stoves and other energy saving equipment.

    We strive to provide opinions, articles, discussions and history related to Hearth Products and in a more general sense, energy issues.

    We promote the EFFICIENT, RESPONSIBLE, CLEAN and SAFE use of all fuels, whether renewable or fossil.
Status
Not open for further replies.

pelletizer

Minister of Fire
Jul 17, 2008
663
Pellet County N.H.
Picked up a bag of Forest pride pellets at Walmart Epping NH $6.00 per bag, Penningtons were $6.00 as well.
 
At the first of the year I got a price increase from the mill. I am at $285 a ton for new customers and $275 current customers.

Eric
 
pelletizer said:
How much for delivery to New England, :)

Let me load up the truck and trailer. What are you paying for mileage? A six pack will get the truck started. $$$$$ after that.
 
Maine, South Portland Walmart is still at $5.75/bag (Penningtons), and has been since Octoberish. HD is closer to $6. These crazy pellet manufacturers are going to price themselves right out of business. Don't they watch the oil prices? When I bought my stove everyone was talking about how much money I will save over oil? LOL...
Mike -
 
Dr_Drum said:
Maine, South Portland Walmart is still at $5.75/bag (Penningtons), and has been since Octoberish. HD is closer to $6. These crazy pellet manufacturers are going to price themselves right out of business. Don't they watch the oil prices? When I bought my stove everyone was talking about how much money I will save over oil? LOL...
Mike -

Oil has little (yes some) to do with the price of pellets. The building industry is gone or down to a crawl. So where is the saw dust? I hope you still can go back to oil if you need too.

Eric
 
Here in NJ pellet prices dropping only slightly. I had my stove installed in October. I bought a ton of AWF pellets at the time for $280. I bought a ton of Energex for $320 the Friday after Thanksgiving and I bought my 3rd ton. a ton of AWF this past monday for $298. I haven't really shopped for pellets but opt for the convenience of buying from the dealer where I bought my stove. They're only 5 miles from my house. Their lot was filled with pellets, so no problem with availability but they only sell to you if you bought your stove from them. I happen to think that policy s*cks but I'm not complaining since I have not had a problem getting pellets on demand. I only have room for 1 -1 1/2 tons in my garage so I'll probably never join the "pellet pigs". On another note the local HD had rocky mountain pellets for $6.99 a bag, no discount for volume buying and the local Sears hardware had Lignetics for $7.99 a bag, I didn't check on bulk price.

On another note, I just had an automatic oil delivery last thursday (01/08/2009). I only needed 91 gallons at $2.63/gal from 10/15/2008. I dug out my oil bills from last year and I used 198 gallons of oil at 3.30/gal from 11/17/2007 through 01/13/2008. I'm impressed with the reduction in oil usage. I haven't done the math (including factoring in the cost of the stove) but I figure that I'm behind burning the pellets this year but will probably save money in the long run as the price of oil continues to climb.
 
kinsman stoves said:
Oil has little (yes some) to do with the price of pellets. The building industry is gone or down to a crawl. So where is the saw dust? I hope you still can go back to oil if you need too.

Eric

Do you honestly believe that pellets are made just from sawdust from saw mills?
 
kinsman stoves said:
Dr_Drum said:
Maine, South Portland Walmart is still at $5.75/bag (Penningtons), and has been since Octoberish. HD is closer to $6. These crazy pellet manufacturers are going to price themselves right out of business. Don't they watch the oil prices? When I bought my stove everyone was talking about how much money I will save over oil? LOL...
Mike -

Oil has little (yes some) to do with the price of pellets. The building industry is gone or down to a crawl. So where is the saw dust? I hope you still can go back to oil if you need too.

Eric

Ya, I am still using oil as well as the pellets I already have. I wont be buying more until oil goes up, or pellets come down. I agree that oil has little to do with the price of pellets in general, but if you consider the oil prices it does matter on a competitive level. The pellet manufacturers are in fact competing with oil, and it's people making the fuel purchase decisions between pellets or oil, so price and savings for the customer should be a major priority for them. They can't sell pellets to run cars, pellets have one purpose. Oil can absorb these swings easier as it's a multi-purpose product. Pellet manufacturers are going to have to find ways to compete with oil prices low.
Mike -
 
There will be a glut of pellets this summer.... pellets are dropping like a rock.

There is at least 3 pellet mills going on line this summer in the NE 100,000 ton each.

http://www.pelletsales.com

You can get LG's at pelletsales for $249 a ton with free April delivery now for next season.

-G
 
It appears pellets have dropped some here in southern NH. My pellet store dropped their prices about 10/ton to $299. However, the store was only selling pellets to customers who bought their stoves from them due to the shortage. They wanted to make sure their customers could get pellets. Starting this week, they are now selling pellets to all. this is a sign to me that the pellet crunch might be loosening up a bit so hopefully the price will continue to decrease. If they want a good season of selling additional stoves, they need to get the pellet prices down now. Otherwise the growth of the industry will slow, which might happen anyway given the state of the economy.
 
NoMoreOPEC said:
There will be a glut of pellets this summer.... pellets are dropping like a rock.

There is at least 3 pellet mills going on line this summer in the NE 100,000 ton each.

http://www.pelletsales.com

You can get LG's at pelletsales for $249 a ton with free April delivery now for next season.

-G


After all that has come to light here......................... would ANYONE pay for pellets now with the promise of delivery in April??
 
Yo Ductape! That is SO right on....<chuckle>
 
Ductape said:
NoMoreOPEC said:
There will be a glut of pellets this summer.... pellets are dropping like a rock.

There is at least 3 pellet mills going on line this summer in the NE 100,000 ton each.

http://www.pelletsales.com

You can get LG's at pelletsales for $249 a ton with free April delivery now for next season.

-G


After all that has come to light here......................... would ANYONE pay for pellets now with the promise of delivery in April??

Ahh...... Pelletsales is the only internet vendor that I know of that you pay when delivered. Been there done that ....
 
I still won't pay $250 a ton, although that's getting closer to being more reasonable. Until prices get back to around $200 a ton, I'm not buying any more. I would hope the majority of you will not be supporting this $300 price point either.
 
There will always be some reason/excuse for the price of pellets to stay high now that they are up there.
For me it began as a back up system and it will remain no more than that.
 
Gio said:
There will always be some reason/excuse for the price of pellets to stay high now that they are up there.
I would have thought the same could have been said of oil last summer...

If people don't buy the product at these high prices, the price point will be forced to drop. If the price doesn't drop and people do not buy them, it will become a niche market and there will be a lot of mills going under.

Like yourself, I'm not forced to burn pellets. I'm choosing to do so this year because I don't have a lot of seasoned wood on hand (although I now have enough cut and stacked to last several years heating with only wood), electric has always been too costly, and coal was expensive locally this year. Just after I switched over from oil to NG (which included buying and installing two new boilers), the gas company that covers my area drastically restructured their rates and fees... so out of principle I refuse to use the gas unless I must. Right now it's cheapest for me to burn pellets, which I paid $205/ton for. I'm expecting to have two tons left over at the end of this season. If prices don't come back in line, I'll be out of the pellet game until they do.

Anyway, if people don't support these high pellet prices, the mills really have no choice but to drop their prices until sales pick up or they get down to their total or marginal cost.

Just my 2 cents.
 
I pretty much agree with most of the posters on this site that are projecting oil prices will go up and pellet prices will drop prior to the next heating season. Pellet prices at $300-$400 per ton still makes economic sense for those who's only alternative for heating their homes is electricity, or LP. I'm currently burning oil that cost me +/- $2.25 per gallon even though I still have 4 tons of NEWP in the garage that cost me $225 per ton including delivery. Over the past five years I've learned that the biggest advantages of having a pellet stove, and a good supply of pellets on hand, is having the option of what to use, and having a dependable back-up system ready to go in minutes.

Because so many people have been burned (forgive the pun) by long delays and unreasonable costs in purchasing stoves and pellets over the last year, I'm concerned that the stove industry will continue to consolidate ala Harman, and fewer people will be willing to purchase stoves and pellets, and the industry will be relegated to a niche market of mostly hardcore Pelletheads.
 
j00fek said:
http://www.pelletheat.com/core/newsItem/?news_id=20
From this link above...

"Will there still be an early buy program?

Based on anticipated market conditions in the spring, we are unlikely to offer discounted spring pricing. Historically, pellet manufacturers including NEWP have offered lower prices to our retailers in the spring. In turn retailers have offered “spring buy” programs to their customers, generally enabling consumers to acquire their full complement of product for the upcoming heating season. With volatility in the market place we have seen more people than ever chose to buy pellets sooner rather than later. This resulted in some unfortunate circumstances. Much like a run on a bank, supply was quickly exhausted, demand increased even more and some dealers oversold (a practice we have strongly cautioned against). NEWP instituted a strict purchase order system to add structure and accountability to help match supply with demand for our dealers. Ultimately retailers will be in a better position to determine the kind of offering they can make to the customer."



I thought this was very interesting. Historically many of us (myself included) only buy our pellets in the spring since prices during the heating season are significantly higher. If there is no 'pre-buy' discount this spring, how many of you will buy pellets??? As I stated above, the principles of economics will have to come into effect at some point, but I'm surprised to see these guys getting away from the spring buy program. I predict a very soft year for the pellet companies in 2009.
 
Can someone please tell me where they are getting pellets for under $300! I purchased two tons of Eastern Embers in July for $250 a ton. I needed more this month I just ordered Energex for $310 a ton and a $35 shipping charge. This is the cheapest I could find in the Central MA area! And I know I will need more pellets before the end of this cold winter.
 
Status
Not open for further replies.