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Pelletsales.com: $343.00 per ton for "Fall" Delivery

Post in 'The Pellet Mill - Pellet and Multifuel Stoves' started by richg, Jun 20, 2008.

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  1. richg Minister of Fire

    joined: Nov 20, 2005
    777 posts
    This was for returning customers only, not new customers who would not be offered fuel. Fall delivery means July-October. Holy ravioli batman, that is nuts.
    richg, Jun 20, 2008
    #1

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  2. webbie Administrator

    joined: Nov 17, 2005
    10,939 posts
    Western Mass.
    Well, if that is the price - and according to my info Pelletsales does not gouge - they just mark up a small amount from the maker, then this means bad tidings. Heck, I would personally refuse to burn pellets at that price.....maybe a bag here and there, but certainly not for actual heat.
    webbie, Jun 20, 2008
    #2

  3. sinnian Minister of Fire

    joined: May 28, 2008
    715 posts
    Limerick, Maine
    What were your parameters for getting the $343 price? I just looked and it was much less for me in "no where" Maine, $296.90 / ton for CleanFire 1.4 tons skids - 7 tons delivered.
    sinnian, Jun 20, 2008
    #3

  4. tinkabranc Minister of Fire

    joined: Oct 23, 2007
    1,636 posts
    South Coast MA
    I just looked as well and I did not see prices that high with delivery.

    The shipping costs vary depending on where you are and how much you order.
    Delivery costs are gonna kill you no matter who you order from this year.

    I saw Cleanfire- 4ton = $285.00 a ton includes delivery.
    tinkabranc, Jun 20, 2008
    #4

  5. JustWood Minister of Fire

    joined: Aug 14, 2007
    3,185 posts
    Arrow Bridge,NY
    HMMMMMMM!!!!! NO, not yet !
    JustWood, Jun 20, 2008
    #5

  6. tinkabranc Minister of Fire

    joined: Oct 23, 2007
    1,636 posts
    South Coast MA
    I am already set for the coming season myself, but I hope this year
    will not be a repeat of 2005
    tinkabranc, Jun 20, 2008
    #6

  7. JustWood Minister of Fire

    joined: Aug 14, 2007
    3,185 posts
    Arrow Bridge,NY
    This year and next is gonna blow 05 out of the water!!!!!
    JustWood, Jun 20, 2008
    #7

  8. sinnian Minister of Fire

    joined: May 28, 2008
    715 posts
    Limerick, Maine
    NO! Someone is just playing 'Chicken Little'. It is NOT time to say, "I.................................

    On a similar note (since you chimed in), I heard from someone in the logging business the other day, that saw dust was going for $75/ton in our region. Now that is more then the $40/ton you have previously mentioned, but I have no idea if $75 is even enough to make it worth while. Is it?
    sinnian, Jun 20, 2008
    #8

  9. JustWood Minister of Fire

    joined: Aug 14, 2007
    3,185 posts
    Arrow Bridge,NY
    No chicken little here ! I said ,and I quote "$300+/ton with the possibility of shortages." We're there already !!!!! It's only June and the lumber markets are still in the shitter with no signs of relief and the forecloser stats are not predicted to peak till mid 09 ! If oil remains high I'm willing to bet by fall of 09 you'll see $420+/ton!



    Doesn't matter what it is worth. It's what the market will bear.
    JustWood, Jun 20, 2008
    #9

  10. tinkabranc Minister of Fire

    joined: Oct 23, 2007
    1,636 posts
    South Coast MA
    No sign of shortages in my area.
    Other than the rising costs of delivery due to fuel, it is business as usual.
    tinkabranc, Jun 20, 2008
    #10

  11. JustWood Minister of Fire

    joined: Aug 14, 2007
    3,185 posts
    Arrow Bridge,NY
    Wait till current (already purchased )inventories are depleted !
    JustWood, Jun 21, 2008
    #11

  12. Steveo Member

    joined: Jun 6, 2008
    247 posts
    Maine
    You can still get pellets in Maine for $219.00 a ton at a place called Dysarts up near Bangor Maine. I already have enough pellets to get me through the year sitting in my shed but will probably pick up one more ton just to have it.
    Steveo, Jun 21, 2008
    #12

  13. cyclone Member

    joined: May 20, 2008
    161 posts
    North East Pennsylvania
    My father just baught a pellet stove three weeks ago and also pre ordered pellets with the stove. We live in norteast Pennsylvania and he got the pellets for $200.00 a ton.
    cyclone, Jun 21, 2008
    #13

  14. JustWood Minister of Fire

    joined: Aug 14, 2007
    3,185 posts
    Arrow Bridge,NY

    Buy a stove get a deal on pellets!
    JustWood, Jun 21, 2008
    #14

  15. Xena Minister of Fire

    joined: Nov 30, 2005
    2,436 posts
    South Shore MA
    I'm guessing you have something other than oil for a backup heat
    source then....... My oil guy wants $4.53 a gallon as I type this. If things
    follow the same pattern as last year, that figure is only going to go up.
    I can foresee HHO costing over $5 a gallon as soon as that first cold snap hits.
    Doing the math, the pellets in the $300 range look pretty good if oil costs over 5 bux a gallon.
    Converting my house to natural gas isn't an option at this point so I have to work with what I've got.
    Xena, Jun 21, 2008
    #15

  16. webbie Administrator

    joined: Nov 17, 2005
    10,939 posts
    Western Mass.
    I have nat gas, which is equiv to about oil at $2.50 or pellets at about $230......not counting the stove cost, service, etc.

    The problem is, of course, that what really matters in most cases is the price of oil during the heating seasons....and somewhat the same with pellets. I would not suggest anyone load up with oil at $5 nor with Pellets at $300+. In the case of the pellets, it's because they aren't worth that, in the case of oil I think it will be available for under that price (well under) during the winter.
    webbie, Jun 21, 2008
    #16

  17. BrotherBart He Who Moderates

    joined: Nov 18, 2005
    21,949 posts
    Northern Virginia
    Yep. Wellhead costs haven't gone up and refining costs are actually down on a per barrel basis with the throughput and the cost saving measures the refiners have implemented over the last few years. When that festering bubble in the middle pops it is going to be interesting.

    A lot of financial geniuses with high dollar futures contracts figuratively stacked on their desks are going to loose their dumb asses. Every person that ever thought they would make a killing in commodities has looked at opening a thirty story window at least once in their life.
    BrotherBart, Jun 21, 2008
    #17

  18. RedRanger New Member

    joined: Nov 19, 2007
    1,428 posts
    British Columbia
    You couldn`t pay me enough to buy a pellet stove at this time. Price of CSD is going way up, and the price of pellets is gonna sky rocket even more. Believe it or not? I actually had a dummy today say that wood heat (pellets and firewood) should be going down cause there is no market for wood. Duh= no market for wood means no processing, so no pellets, and not much firewood. Or a minimum production for both. which = supply and demand. which = higher prices.

    It is unbelilevable how stunned some people are as regards supply and demand,specially when you look at the whole chain. They are simply too stupid or naive to understand that a chink in the chain, or worse, mutiple kinks in the chain, is just total disruption. :roll:
    RedRanger, Jun 21, 2008
    #18

  19. ugenetoo New Member

    joined: Apr 7, 2006
    141 posts
    northern maine
    are you locked in to that price for natgas?
    ugenetoo, Jun 21, 2008
    #19

  20. Xena Minister of Fire

    joined: Nov 30, 2005
    2,436 posts
    South Shore MA
    I secured my pellet supply for this yr. back in April, but just out of curiosity
    after seeing this thread I just looked and indeed I got
    a price for the minimum of 2 tons delivered to my home
    in the Stoughton - Randolph area. Holy cat poop batman!
    Here are the stats:

    Wood Pellets (Premium) Premier Pellet Fall Delivery (Jul - Oct) 2 $360.04
    Price would be ten dollars less if paid by check.
    Xena, Jun 21, 2008
    #20

  21. webbie Administrator

    joined: Nov 17, 2005
    10,939 posts
    Western Mass.
    Even better! I own nat gas stocks and ETF's, etc. which will pay for all my heat just in dividends, let alone that they will go up. In the 4 years I have been here, including the crisis of Katrina (big run up in pricing), the average per therm price has been $1.50 approx.

    If it goes up to $2.50, as I expect, it will still be cheap - furnaces is 90+ percent efficient and house is relatively new and tight. Current cost for the coldest month in Ma winter about $250, or the same as a ton of pellets.

    For that I get 3 zone heat, gas hot water (lots), cooking and our gas dryer. Given 2500+ square feet, I doubt I could do that with a ton of pellets.

    There are no safe bets, but you can hedge bets......I also have a pellet stove in the shop, and some bags of pellets there...

    BTW, utilities do lock in prices for nat gas (their supply), although I have not inquired as to whether my local one has done so.
    webbie, Jun 21, 2008
    #21

  22. webbie Administrator

    joined: Nov 17, 2005
    10,939 posts
    Western Mass.
    Here's one for you - we bought 33 cubic yards of mulch today from a local logging outfit.....expensive! I think they get $35+ per cubic yard.

    The truck which brought is - my guess - may have held 8 tons. That means they received $150 a ton for green wood. It does not take too much math to see that such an operation would not make much if they used the same wood for pellets.....

    Take that 8 tons - use 1 ton to generate the heat to dry the other 7.
    Drying the other 7, results in about 5 or less of dry material.
    Spend tens of millions on a plant.
    End up with 5 tons bagged after all that.......

    If you followed this far, you would understand that they received over $200 a ton for those 5 (dry) tons from me for mulch! So how much would they have to sell the finished pellets for to pay for the plant and manufacturing and the middlemen? Well, I guess about $350 in this case!

    I don't doubt that there will be lots of decent deals regionally for pellets....heck, some people are still paying $200 or even less. But the market rules, and where the product can be sold as other things - from mulch to particle board - the highest price will prevail. There is no other possibility.
    webbie, Jun 21, 2008
    #22

  23. ugenetoo New Member

    joined: Apr 7, 2006
    141 posts
    northern maine
    can you buy enough ahead at the current price to heat your home for the winter?
    ugenetoo, Jun 21, 2008
    #23

  24. JustWood Minister of Fire

    joined: Aug 14, 2007
    3,185 posts
    Arrow Bridge,NY

    EXACTLY !!!!!!!!!

    Lets not forget about bedding to farmers which is usually sold locally ,within 20 miles of a mill .
    JustWood, Jun 21, 2008
    #24

  25. buildingmaint Feeling the Heat

    joined: Jan 19, 2007
    459 posts
    Oil City PA
    I would think that if there was no place that wanted wood for lumber, then there would be a glut on the market for pellets. Why would you not sell your product if there was a market that wanted your product , even if it was not the market you used to sell to.
    buildingmaint, Jun 21, 2008
    #25
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