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. Eric Johnson

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    Just for a reality check on pellet raw material pricing: I heard recently that our local pellet mill is paying $50 per green ton for clean chips. That's a lot, considering that a lot of what they're buying is water. It puts the actual price per ton of pellet-ready fiber at closer to $100. The chips have to be dried, milled and pressed, and then packaged and shipped. Considering the high capital cost of a pellet plant, plus all the middle men involved, there's probably not a whole lot of profit left over, even with pellets selling in the $250+/ton range.

    In the case I'm talking about, it's about 50 miles from the logging job to the mill. So transportation of the raw material is obviously part of the price. And the guys making the chips are doing it with very energy-thirsty equipment with $5 per-gallon diesel. And then there are energy costs associated with processing and transporting the finished product.

    I was shocked to see pellet prices so high above $200/ton, but a lot of that (though probably not all) is simply to offset much higher production costs.
     
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  2. JustWood

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    Thats ironic Eric ,I myself just got off the phone an hour ago with a pellet plant in NY who gave me the same price.It's still not enough money to peak my interest for a $1.5 MILLION investment. I had a good half hour conversation with him about where prices are heading for raw material ,the lack of raw material on the market, the # of mills that supplied him that have gone out of business,and the paniced rush in northern NE. He was relieved to hear from someone looking to invest in equipment that would supply him with raw material.
     
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  3. Willman

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    I feel that fear in the energy consuming populace has been overtaken by sheer panic. Nothing like good old fashioned panic to skew all things that have been dear to all. I can't go anywhere or watch or listen to anything without hearing about the price of oil. Pellets are a fast oil replacement for most people. The industry will adapt. Just don't let the long underwear get too far outa sight.

    Will
     
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  4. RedRanger

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    Putting mine on come Oct> :cheese:
     
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  5. slls

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    #2 oil in my area right now is $4.50 a gallon and this is summer. I figure in stead of paying that price and more this winter to heat my house. I will buy a pellet stove and at least have some thing to look at in the spring instead of oil receipts. Not much NG in my area.
     
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  6. ugenetoo

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    at least we dont have to listen or read about the new ethanol plants that are coming online to save us. with $8 corn, they and their deep pocketed backer (us gov) are being dealt a well deserved reality check.
    oh well, if you watch real close you can still get longjohns at the back of the store at walmart on clearance. ;-)
     
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  7. map10000

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    Please keep in mind that Corn is one of the vegetables that makes this country go around. Besides the fact that we eat a lot of it, the steak and milk that you like soo much comes from the cows who eat....corn. Also, corn is one of the primary vegetables used in starches....which, again is used in cooking and also in industrial manufacturing processes. So before you swear off corn, consider its many uses beyond ethanol....which I do agree is a senseless fuel.
     
  8. MButkus

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    I just got 2 tons and shipping and stacking for $540 from Agway NJ
     
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  9. Mom2Czars

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    I just got this quote from pelletsales for a local delivery. What's interesting to me is that delivery was unavailable to me last week but now it is. I think the delivery charge is high, but it beats the hell out of schlepping that stuff ourselves. Does anyone know anything about LG wood pellets? It says that they're coming from Canada and they're softwood.

    Wood Pellets (Premium) Granules LG Wood Pellets (1.5 tons/skid) Summer Shipment (Delivery in Jul - Aug) 3 (fuel) $269.90 (shipping per ton $33.00) total per ton cost cash/credit: $302.90 $311.23
     
  10. Jabberwocky

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    My data leads me to agree with you. The 4 tons I burnt at $235/ton last year was a no brainer. Natural Gas heating would have run $2500 easy.

    Hauling a bag up at dinner time, 15 minutes of cleaning on Saturday and 30 minutes every 3-4 weeks was like a well paying part time job.
     
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  11. arubadawn

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    I live in NEPA and am researching a pellet stove. Where and what did your father buy?
     
  12. Wet1

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    I hope you're not insinuating 4 tons of pellets replaces $2500 worth of natural gas! If so, I have to disagree. Natural gas in most places is about half the cost of oil. Four tons of pellets is about the equivalent of 500 gal of oil. If oil is $4.50/gal, that's still only $2250 worth of oil... or only about $1100 worth of natural gas. In many places, natural gas is still cheaper than pellets.
     
  13. ugenetoo

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    NOT FOR LONG!
     
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  14. webbie

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    Natural Gas at $2.00 a therm - current prices - compares about exactly to Pellets at $280 a ton.
    So if a user bought 4 tons of pellets at $225 delivered, they would save $65 per ton (BTU to BTU) and therefore $260 for the season, not including maintaining the stove, purchase of the stove, or labor.

    Let's not start the "you and a BTU" conversation again!

    Put the figures into http://www.hearth.com/compare
    and you will see what the reasonable comparison is.
     
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  15. MainePellethead

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    Natural Gas in Maine sucks for cost. My son was in a 2 bedroom apartment in Portland Maine.....was costing him 150-175 a month and he froze lol....he could have heated it with my pellet stove for MUCH cheaper. :) Pellets far outweigh NG for cost I think.
     
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  16. rayttt

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    Pelletsales.com now has summer delivery of GreenWay pellets...a brand new hardwood pellet companys pellets. The price is quite high..but they are available at least.
     
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  17. ugenetoo

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    how hi?
     
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  18. Steve_in_NH

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    Pellet Newbie. Purchased Harman insert in May it was installed today (7/22). We ordered 3 tons of pellets from PelletSales.com at #310.00 per ton delivered. Guaranteed fall delivery. Were recently offered option to change pellets brands but new brand came in 75 lb. bage. Too much for my old back. Could have gotten earlier deliveery with alternative brand but I'm in no hurry (yet). Just my 2 cents....
     
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  19. hoverfly

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    The big question, will any prices increases stick? If oil comes close to pellets per BTU then people most likely will stick with oil, and now who's going to suck up the loss if pellet prices drop in order to reduce stock? I mean 100 gallons of oil at $3.50 a gallon would it be worth it to buy pellets at a price between 300.00 and 350. dollars a ton? Depend on how much you burn but for me, at most I burn 350 gallons. Now as for saw dust short fall, it's only a temporary issue, by next summer pellet producers should upgrade their plants to handle whole tree chips instead, sooner would be better and prices could be $50 or less per ton depending on demand. The cost of pellets is going to have to be fluid as oil is right now. I think the panic buying will continue for stoves and pellets as other stores who have stoves coming on the planed fall product shift, so I don't see the smoke clearing until between November and January, well into the heating seasoned. Right now it's a gamble on what you get, but having two heating fuel sources in a home will smooth out a lot of over pricing on both fuels and create for the first real competition for the oil companies. This people is a major history maker that we are part of here, Drill, Drill, Drill, or Saw, Saw, Saw our way out of an energy crises. This people is free market capitalism, you get to decide!


    Oh yeah I forgot that it looks some relief for oil could come in as little in a year off the west coast, the infastructure is there they just need to drill.
     
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  20. bisson

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  21. rayttt

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    Feeling the Heat

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    The pellets I ordered in April for a May delivery will be here on Monday.
    I should have all I need for the first FULL winter with my stove.
    I also ordered another pelletstove from northern tool for 1200 bucks.. and it should be here probably on monday also.
    So things for me are looking up in the heat department.
     
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  22. cristiansmom

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    Wow Hoverfly..
    Only 350 gallons of oil? Is that with stove or without?? I burn about 800 gallons of oil (without stove) and I have a small cape. Granted my furnace is 20 years old but still.. You must have a small house to only burn 350.. My cape is only about 1400 sq feet but only 1000 is heated..

    Debi
     
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  23. hoverfly

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    Small mobil home 600sqft, unfotunaly can't afford any thing else right now or for some time to come. To small for two people these days.
     
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  24. slls

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    800 gallons, you need a new furnace and some more insulation. I burned last year 623 gallons, 12 months heat and hot water. 1 ½ story 1500 square feet and set thermostat 70 deg 24/7.
     
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  25. cristiansmom

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    I know my furnace is old.. I am also home all day with kids so I keep it about 72 during the day and about 66 at night.

    Debi
     
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