Shortage of PELLETS? Rumor that the MILL BURNED DOWN????

[Todd]

Even if the supply meets demand, I don't see the prices of pellets going down. You can't justify the price of pellets going up 75% in the last 5 years around here over supply and demand. It's just plain price gouging as far as I'm concerned. There is too much greed out there. They will keep the price just a little less than what it takes to heat with gas or electric. They are out to make a buck just like everyone else.

 

[BrotherBart]

Five snowflakes on the east coast and all hell will break loose again. The people I sold those Jotul gas stoves to this year are laughing up their sleeves though. I bought those things just as gas prices were heading for the sky last year. Everybody told me I bought a bunch of boat anchors. Most of them sold in one month this year. November.

The goofy part is that my electric bill has been climbing. No more usage but the idiots at my electric coop got themselves locked into over-priced NG during the run-up. Now they are passing their stupidity through on the bills after NG prices cratered. I can't wait for the next board of directors elections.

Low NG prices will be the bain of pellet producers and the variability of NG prices will keep major investment out of the pellet production market. Ya just can't risk big bucks to build pellet plants with a gun like that at your head.

 

[stoveguy2esw]

i think it is different in different regions, in the northeast (traditionally a heavy pellet use region) pellet costs are high, actually high enough that a lot of pellet stove owners are turning on their electric or gas as the difference in cost is not enough to put forth the effort that running a pellet stove requires. in the midwest and northwest, the pellets though higher are still allowing enough of a difference in price that folks are still using them, also in the midwest region more folks have committed to pellet burning and have not kept a capable alternative heat source. i checked in with bruce lisle (ceo of the pellet fuels institute and owner of energex) last summer and found out that pellet manufacturing was expected to increase by as much as 35% for this season after last years shortage. biggest thing i see is that pellet fuel prices need to come down to make the fuel cost effective again. corn/biomass units were up this year pellet stoves were kinda steady but not the levels that were expected. biggest selling point for the corn units this year is that they can burn corn or pellets( ours and others can) where pellet stoves cannot (some can burn a mix but i dont think any can handle straight corn)

 

[hearthtools]

Even if the supply meets demand, I don't see the prices of pellets going down. You can't justify the price of pellets going up 75% in the last 5 years around here over supply and demand. It's just plain price gouging as far as I'm concerned. There is too much greed out there. They will keep the price just a little less than what it takes to heat with gas or electric. They are out to make a buck just like everyone else.

It is NOT price qouging. it is the cost of TRUCKING!!

My cost for pellets from my mill have gone up $15 per ton in the past 3 years.
My cost of shipping has gone up $40+ per ton in the past one year.
I wish it was just prie qouging then I could shop around for the best price. It is kind of hard to to that for trucking because most trucking companys are about the same unless you can find a Supplier CLOSER.

Look at LPG it has gone up 100% in the past 5 years. You could find any suppler in my area and get LP for around a $1 per gallon.
I just seen a list of ALL the LP suppliers in my area and the prics where $2.10 to $3.00 per gallon.

Stop spreading around that US suppliers our RIPPING YOU ALL OFF!
Im making a whopping $30 per ton and that is before
My time to get on the phone twice a week to make sure a truck is going to make it on time.
My labor 2 people to Unload 21 tons off a truck at 7am in 17 to 30 deg weather Rain, snow or shine
Forklift cost
EXTRA Yard Storage cost
Loss for Wet and Forklift damage pellets.
Labor of Loading 4 bags into little old ladies cars every 4 days.

 

[Mike Wilson]

Merry Christmas Rod... inhale… exhale… inhale… exhale…

Now go have some egg nog!

-- Mike

 

[Mike Wilson]

^

 

[Homefire]

I buy from a mill that is 30 miles from my home for $175 a ton.
I can haul 3 ton at a time with my truck an trailer.
That is about 5 gal. of gasoline that cost about $12 - $13 .
2 trips a year sets me up just fine.
Empire Pellets.

 

[kinglew]

now shortage in western ny 239 ton aor less lots of supply wallmart 270 pallet 60 40lbs =2400lbs 20 tons on hand may clearance soon to make room for spring stock may mark down to 180 a pallet

 

[Xena]

everyone is at the mercy of supply and demand in one way or another. As for pellets and corn, sure, if you wait until the season is upon you, you deserve what you get. Just like you folks who burn with wood, if you cut and season your own, you are planning at least a year ahead of time. No reason the corn/pellet guys cant either. Buy your pellets when they are plentiful and the prices are the cheapest. Heres an opportunity for you. Im seeing everyone trying to get on the pellet bandwagon this year, like grocery stores. Wait till late winter, early spring and go in and give them an offer they cant refuse! No grocery store will wanna keep pellets all summer.....go in and buy them...cheap.

I tell the people that come in and get 5 bags at a time and groan that we are low.
WHY DONT YOU BUY YOUR PELLETS IN THE SUMMER AND YOU WONT BE RUNNING AROUND LIKE A CHICKEN WITH YOUR HEAD CUT OFF LOOKING FOR PELLETS?
KIND OF LIKE BUYING A TURKEY ON THANKSGIVING DAY.

Yeah sounds like good advice except everyplace within
reasonable proximity to me that I called
over the summer told me they don't stock pellets until the Fall.

 

[stoveguy2esw]

Even if the supply meets demand, I don't see the prices of pellets going down. You can't justify the price of pellets going up 75% in the last 5 years around here over supply and demand. It's just plain price gouging as far as I'm concerned. There is too much greed out there. They will keep the price just a little less than what it takes to heat with gas or electric. They are out to make a buck just like everyone else.

It is NOT price qouging. it is the cost of TRUCKING!!

My cost for pellets from my mill have gone up $15 per ton in the past 3 years.
My cost of shipping has gone up $40+ per ton in the past one year.
I wish it was just prie qouging then I could shop around for the best price. It is kind of hard to to that for trucking because most trucking companys are about the same unless you can find a Supplier CLOSER.

Look at LPG it has gone up 100% in the past 5 years. You could find any suppler in my area and get LP for around a $1 per gallon.
I just seen a list of ALL the LP suppliers in my area and the prics where $2.10 to $3.00 per gallon.

Stop spreading around that US suppliers our RIPPING YOU ALL OFF!
Im making a whopping $30 per ton and that is before
My time to get on the phone twice a week to make sure a truck is going to make it on time.
My labor 2 people to Unload 21 tons off a truck at 7am in 17 to 30 deg weather Rain, snow or shine
Forklift cost
EXTRA Yard Storage cost
Loss for Wet and Forklift damage pellets.
Labor of Loading 4 bags into little old ladies cars every 4 days.

i dont disagree with rod at all, he's right about the cost and it doesnt look to me like he's making any appreciable money for the labor involved. i dont know what the solution is , myself i dont think its right to point fingers at any specific part of the industry, dealers generally dont make a huge amount on pellet sales from what i am hearing, i do not know anything about what it costs to make and ship them so i cant beat on the manufacturers either, shipping costs are going to be higher due to fuel costs im sure , looking at rod's profit margin it looks to me that he is trying to do right by his customers, he certainly could charge a higher rate and probably be able to justify it, but he doesnt , so my hat is off to him

 

[whistlingwind]

We are the only store in 100 miles that has pellets.
people keep coming in and saying LOWES, Longs and the other suppliers dont have pellet because of the Mill burned down.
Does anyone have any info on this.
I have not heard this but I hear this every year when other supplier dont have pellets.

We have been rationing pellets for the past week 5 bags per household.

Yep, there is a real shortage in N. California.

Lowes, Aces, Home Depot, Orchard supply and local establishments are all *out*. I called 10-12 places around the SF basy area - zip, nada for at least the past 3 weeks. Finally found some at a local grocery store 100 miles away in Rio Vista. They wanted $7.99 a bag! Talk about price gouging -- I passed.

The usual brands around here are Lignetics and GoldenFire -- any idea what is going on?

You dealers that have a 'warehouse full' of pellets should send them to Northern California!

W. Wind

 

[way2lazy]

We have been sitting around the Pacific NW with mills running 24/7, making sawdust like crazy. Plenty o' pellets until this spring. Now the mills are cutting back because of surplus materials due to the "housing slump". This is creating price increases due to speculation, I suppose. The price of pellets has gone up about $80/ton this fall. Some of the mills are now telling me that the "big fire" is one of the reasons. Google "wildfire, White Salmon"

http://www.king5.com/localnews/stories/NW_092107WAB_mill_fire_KS.f7986f5a.html


Spud

 

[CK-1]

Corn-Pellets. I don't get. I think I'll stick to burning wood. Why would you wany to be at the mercy of supply and demand.

No body wants to be at the mercy of supply & demand. Many people like myself invested in their pellet stoves when the pellets were cheap and plentiful. At that particular juncture it was not a bad choice. The main reason I chose mine is because it enabled me to heat solely with pellet fuel and at the time was a savings over my wood/baseboard electric mix. My wife and myself both work so heating solely with wood was not working out for us. At this point my wood/electric baseboard mix would be equal in cost or a little cheaper.
My grandfather worked for PP&L;for 35 years. We argue constantly about the merits of heating with electricity vs. wood or pellets. The arguement usually ends with "go back your ass up to your freakin baseboard after hunting and tell me which is better!"

A buddy of mine has the pellet/corn stove. But even corn is getting pricey due to drought and alt. fuel. Hmmm.. far as work.. Wifey and I work as well and I landscape part-time during the weekends and have 2 little kiddies.. But still manage to keep a ample wood supply...

 

[gscreely]

We are the only store in 100 miles that has pellets.

I am in central PA and we have pellets galore, although they are not super cheap (205 a ton). I was told that manufacturers make $10 more a ton to export to Europe, maybe thats where they are all going. With in 100 miles of my home there are over a half dozen pellet manufacturers, and probably 4 dozen places that sell them (and have tons of them sitting out).

 

[Jake]

oooo better check the date on the OP